Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 29, 2018 | Oct. 25, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | VALMONT INDUSTRIES INC | |
Entity Central Index Key | 102,729 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 29, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-29 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 22,088,480 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Net sales | $ 678,692 | $ 680,779 | $ 2,059,781 | $ 2,030,989 |
Total cost of sales | 514,352 | 517,185 | 1,551,202 | 1,519,510 |
Gross profit | 164,340 | 163,594 | 508,579 | 511,479 |
Selling, general and administrative expenses | 110,200 | 103,504 | 326,809 | 308,283 |
Impairment of goodwill and intangible assets | 15,780 | 0 | 15,780 | 0 |
Operating income | 38,360 | 60,090 | 165,990 | 203,196 |
Other income (expenses): | ||||
Interest expense | (10,954) | (11,190) | (33,819) | (33,312) |
Interest income | 1,000 | 1,311 | 3,713 | 3,205 |
Costs associated with refinancing of debt | (14,820) | 0 | (14,820) | 0 |
Loss from divestiture of grinding media business | 0 | 0 | (6,084) | 0 |
Other | 2,496 | 350 | 3,199 | 1,203 |
Total other income (expenses) | (22,278) | (9,529) | (47,811) | (28,904) |
Earnings before income taxes | 16,082 | 50,561 | 118,179 | 174,292 |
Income tax expense (benefit): | ||||
Current | 10,777 | 21,163 | 35,214 | 50,264 |
Deferred | (1,686) | (7,268) | 814 | 79 |
Total income tax expense (benefit) | 9,091 | 13,895 | 36,028 | 50,343 |
Net earnings | 6,991 | 36,666 | 82,151 | 123,949 |
Less: Earnings attributable to noncontrolling interests | (2,543) | (1,458) | (5,462) | (4,098) |
Net earnings attributable to Valmont Industries, Inc. | $ 4,448 | $ 35,208 | $ 76,689 | $ 119,851 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.20 | $ 1.56 | $ 3.42 | $ 5.33 |
Diluted (in dollars per share) | 0.20 | 1.55 | 3.40 | 5.28 |
Cash dividends declared per share (in dollars per share) | $ 0.375 | $ 0.375 | $ 1.125 | $ 1.125 |
Weighted average number of shares of common stock outstanding - Basic (in shares) | 22,215 | 22,527 | 22,421 | 22,505 |
Weighted average number of shares of common stock outstanding - Diluted (in shares) | 22,352 | 22,751 | 22,574 | 22,717 |
Product sales | ||||
Net sales | $ 597,469 | $ 602,080 | $ 1,816,597 | $ 1,807,539 |
Total cost of sales | 460,547 | 462,854 | 1,389,832 | 1,366,875 |
Services sales | ||||
Net sales | 81,223 | 78,699 | 243,184 | 223,450 |
Total cost of sales | $ 53,805 | $ 54,331 | $ 161,370 | $ 152,635 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Net earnings | $ 6,991 | $ 36,666 | $ 82,151 | $ 123,949 |
Foreign currency translation adjustments: | ||||
Unrealized translation gain (loss) | (10,632) | 19,530 | (50,781) | 60,471 |
Realized loss on divestiture of grinding media business recorded in earnings | 0 | 0 | 9,203 | 0 |
Gain (loss) on hedging activities: | ||||
Net investment hedges | 1,223 | (740) | 2,830 | (1,816) |
Amortization cost included in interest expense | 395 | 19 | 439 | 56 |
Deferred loss on interest rate hedges | 0 | 0 | (2,467) | 0 |
Commodity hedges | 226 | 0 | 1,571 | 0 |
Cross currency swaps | (2,037) | 0 | (2,037) | 0 |
Other comprehensive income (loss) | (11,542) | 18,809 | (40,744) | 58,711 |
Comprehensive income (loss) | (4,551) | 55,475 | 41,407 | 182,660 |
Comprehensive loss (income) attributable to noncontrolling interests | (2,389) | (2,570) | (8,250) | (4,552) |
Comprehensive income attributable to Valmont Industries, Inc. | (6,940) | 52,905 | 33,157 | 178,108 |
Foreign Exchange Forward [Member] | ||||
Gain (loss) on hedging activities: | ||||
Realized loss (gain) on net investment hedge recorded in earnings | 0 | 0 | 1,215 | 0 |
Commodity Contract [Member] | ||||
Gain (loss) on hedging activities: | ||||
Realized loss (gain) on net investment hedge recorded in earnings | $ (717) | $ 0 | $ (717) | $ 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 295,622 | $ 492,805 |
Receivables, net | 500,406 | 503,677 |
Inventories | 399,905 | 420,948 |
Contract asset - costs and profits in excess of billings | 112,620 | 16,165 |
Prepaid expenses and other assets | 40,655 | 27,478 |
Refundable income taxes | 13,182 | 11,492 |
Total current assets | 1,362,390 | 1,472,565 |
Property, plant and equipment, at cost | 1,153,843 | 1,165,687 |
Less accumulated depreciation and amortization | 646,122 | 646,759 |
Net property, plant and equipment | 507,721 | 518,928 |
Goodwill | 389,594 | 337,720 |
Other intangible assets, net | 178,693 | 138,599 |
Other assets | 124,680 | 134,438 |
Total assets | 2,563,078 | 2,602,250 |
Current liabilities: | ||
Current installments of long-term debt | 829 | 966 |
Notes payable to banks | 3,328 | 161 |
Accounts payable | 200,468 | 227,906 |
Accrued employee compensation and benefits | 80,843 | 84,426 |
Accrued expenses | 106,929 | 81,029 |
Other intangible assets, net | 8,310 | 8,510 |
Total current liabilities | 400,707 | 402,998 |
Deferred income taxes | 45,076 | 34,906 |
Long-term debt, excluding current installments | 736,185 | 753,888 |
Defined benefit pension liability | 179,877 | 189,552 |
Deferred compensation | 48,174 | 48,526 |
Other noncurrent liabilities | 19,311 | 20,585 |
Shareholders’ equity: | ||
Preferred stock of $1 par value - Authorized 500,000 shares; none issued | 0 | 0 |
Common stock of $1 par value - Authorized 75,000,000 shares; issued 27,900,000 issued | 27,900 | 27,900 |
Retained earnings | 2,022,538 | 1,954,344 |
Accumulated other comprehensive loss | (322,554) | (279,022) |
Treasury stock | (670,667) | (590,386) |
Total Valmont Industries, Inc. shareholders’ equity | 1,057,217 | 1,112,836 |
Noncontrolling interest in consolidated subsidiaries | 76,531 | 38,959 |
Total shareholders’ equity | 1,133,748 | 1,151,795 |
Total liabilities and shareholders’ equity | $ 2,563,078 | $ 2,602,250 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 29, 2018 | Dec. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized shares (in shares) | 500,000 | 500,000 |
Preferred stock, issued shares (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized shares (in shares) | 75,000,000 | 75,000,000 |
Common stock, issued shares (in shares) | 27,900,000 | 27,900,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net earnings | $ 82,151 | $ 123,949 |
Adjustments to reconcile net earnings to net cash flows from operations: | ||
Depreciation and amortization | 62,018 | 63,500 |
Noncash (gain) loss on trading securities | (62) | 395 |
Impairment of property, plant and equipment | 4,197 | 0 |
Impairment of goodwill and intangible assets | 15,780 | 0 |
Loss from divestiture of grinding media business | 6,084 | 0 |
Stock-based compensation | 8,076 | 7,300 |
Defined benefit pension plan expense (benefit) | (1,713) | 481 |
Contribution to defined benefit pension plan | (1,555) | (26,064) |
Gain on sale of property, plant and equipment | (353) | (732) |
Deferred income taxes | 814 | 79 |
Changes in assets and liabilities: | ||
Receivables | (612) | (39,584) |
Inventories | (33,004) | (41,545) |
Prepaid expenses and other assets | (18,486) | (12,331) |
Contract asset - costs and profits in excess of billings | (33,029) | 695 |
Accounts payable | (19,069) | 28,895 |
Accrued expenses | 7,288 | 20,157 |
Other noncurrent liabilities | (1,249) | (1,627) |
Income taxes refundable | (9,223) | (1,732) |
Net cash flows from operating activities | 68,053 | 121,836 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (48,919) | (39,898) |
Proceeds from sale of assets | 64,786 | 1,575 |
Acquisitions, net of cash acquired | (125,309) | (5,362) |
Settlement of net investment hedges | (1,621) | 5,123 |
Other, net | (2,371) | (3,462) |
Net cash flows from investing activities | (113,434) | (42,024) |
Cash flows from financing activities: | ||
Proceeds/(payments) under short-term agreements | 3,217 | (549) |
Proceeds from long-term borrowings | 236,936 | 0 |
Principal payments on long-term borrowings | (252,952) | (658) |
Settlement of financial derivatives | (2,467) | 0 |
Debt issuance costs | (2,322) | 0 |
Dividends paid | (25,415) | (25,386) |
Dividends to noncontrolling interest | (5,737) | (3,895) |
Purchase of noncontrolling interest | (5,510) | 0 |
Purchase of treasury shares | (86,919) | 0 |
Proceeds from exercises under stock plans | 6,376 | 12,446 |
Purchase of common treasury shares—stock plan exercises | (1,914) | (3,929) |
Net cash flows from financing activities | (136,707) | (21,971) |
Effect of exchange rate changes on cash and cash equivalents | (15,095) | 23,133 |
Net change in cash and cash equivalents | (197,183) | 80,974 |
Cash, cash equivalents, and restricted cash—beginning of year | 492,805 | 412,516 |
Cash, cash equivalents, and restricted cash—end of period | $ 295,622 | $ 493,490 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock | Noncontrolling interest in consolidated subsidiaries |
Beginning balance at Dec. 31, 2016 | $ 982,586 | $ 27,900 | $ 0 | $ 1,874,722 | $ (346,359) | $ (612,781) | $ 39,104 |
Increase (Decrease) in Shareholders' Equity | |||||||
Net earnings | 123,949 | 119,851 | 4,098 | ||||
Other comprehensive income (loss) | 58,711 | 58,257 | 454 | ||||
Cash dividends declared | (25,417) | (25,417) | 0 | ||||
Dividends to noncontrolling interests | (3,895) | (3,895) | |||||
Stock options exercised | 12,446 | (7,300) | 5,445 | 14,301 | |||
Stock plan exercises | (3,929) | (3,929) | |||||
Stock option expense | 3,868 | 3,868 | |||||
Stock awards | 4,276 | 3,432 | 844 | ||||
Ending balance at Sep. 30, 2017 | 1,152,595 | 27,900 | 0 | 1,974,601 | (288,102) | (601,565) | 39,761 |
Increase (Decrease) in Shareholders' Equity | |||||||
Cumulative impact of ASC 606 adoption | Accounting Standards Update 2014-09 | 9,771 | 9,771 | |||||
Cumulative impact of ASC 606 adoption | Accounting Standards Update 2016-16 | 1,038 | 1,038 | |||||
Beginning balance at Dec. 30, 2017 | 1,151,795 | 27,900 | 0 | 1,954,344 | (279,022) | (590,386) | 38,959 |
Increase (Decrease) in Shareholders' Equity | |||||||
Net earnings | 82,151 | 76,689 | 5,462 | ||||
Other comprehensive income (loss) | (40,744) | (43,532) | 2,788 | ||||
Cash dividends declared | (25,204) | (25,204) | 0 | ||||
Dividends to noncontrolling interests | (5,737) | (5,737) | |||||
Stock options exercised | 6,376 | (7,172) | 5,900 | 7,648 | |||
Purchase of noncontrolling interests | (5,510) | (5,510) | |||||
Addition of noncontrolling interest | 40,569 | 40,569 | |||||
Purchase of treasury shares | (86,919) | (86,919) | |||||
Stock plan exercises | (1,914) | (1,914) | |||||
Stock option expense | 3,138 | 3,138 | |||||
Stock awards | 4,938 | 4,034 | 904 | ||||
Ending balance at Sep. 29, 2018 | $ 1,133,748 | $ 27,900 | $ 0 | $ 2,022,538 | $ (322,554) | $ (670,667) | $ 76,531 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - shares | 9 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Purchase of treasury shares, shares acquired (in shares) | 614,454 | |
Stock plan exercises; shares acquired (in shares) | 12,971 | 24,672 |
Stock options exercised; shares issued (in shares) | 52,404 | 106,351 |
Stock awards; shares issued (in shares) | 7,774 | 6,034 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 29, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Condensed Consolidated Financial Statements The Condensed Consolidated Balance Sheet as of September 29, 2018 , the Condensed Consolidated Statements of Earnings and Comprehensive Income for the thirteen and thirty-nine weeks ended September 29, 2018 and September 30, 2017 , and the Condensed Consolidated Statements of Cash Flows and Shareholders' Equity for the thirty-nine week periods then ended have been prepared by the Company, without audit. In the opinion of management, all necessary adjustments (which include normal recurring adjustments) have been made to present fairly the financial statements as of September 29, 2018 and for all periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These Condensed Consolidated Financial Statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 30, 2017 . The accounting policies and methods of computation followed in these interim financial statements are the same as those followed in the financial statements for the year ended December 30, 2017 with the exception of the revenue recognition accounting policy which changed from adopting ASU 2014-09 and is discussed later within this footnote. The results of operations for the period ended September 29, 2018 are not necessarily indicative of the operating results for the full year. Inventories Approximately 35% and 37% of inventory is valued at the lower of cost, determined on the last-in, first-out (LIFO) method, or market as of September 29, 2018 and December 30, 2017 . All other inventory is valued at the lower of cost, determined on the first-in, first-out (FIFO) method or market. Finished goods and manufactured goods inventories include the costs of acquired raw materials and related factory labor and overhead charges required to convert raw materials to manufactured and finished goods. The excess of replacement cost of inventories over the LIFO value is approximately $49,239 and $43,727 at September 29, 2018 and December 30, 2017 , respectively. Inventories consisted of the following: September 29, December 30, Raw materials and purchased parts $ 202,517 $ 183,029 Work-in-process 24,046 30,671 Finished goods and manufactured goods 222,581 250,975 Subtotal 449,144 464,675 Less: LIFO reserve 49,239 43,727 $ 399,905 $ 420,948 (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Income Taxes Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries for the thirteen and thirty-nine weeks ended September 29, 2018 and September 30, 2017 , were as follows: Thirteen Weeks Ended Thirty-nine Weeks Ended 2018 2017 2018 2017 United States $ 15,596 $ 28,886 $ 99,697 $ 115,082 Foreign 486 21,675 18,482 59,210 $ 16,082 $ 50,561 $ 118,179 $ 174,292 The Company estimated and recognized provisional amounts at December 30, 2017 for the following aspect of the 2017 Tax Cuts and Jobs Act ("2017 Tax Act") and updated the amounts as of September 29, 2018: • Deemed Repatriation transition tax : The Deemed Repatriation transition tax (“Transition Tax”) is a tax on unremitted foreign earnings of certain foreign subsidiaries, which subjected the Company's unremitted foreign earnings of $393,962 to tax at certain specified rates less associated foreign tax credits, a decrease of $6,038 from the December 30, 2017 estimate. The Company recorded a provisional Transition Tax obligation of $9,436 , a decrease of $454 from the December 30, 2017 estimate. • Indefinite reinvestment assertion : The Company's position remains that unremitted foreign earnings subject to the Transition Tax are not indefinitely reinvested. The Company recorded a provisional amount of the deferred income taxes for foreign withholding taxes and U.S. state income taxes of $10,713 and $1,300 , respectively. This was an increase of $340 from the December 30, 2017 estimate related to foreign withholding taxes. • Adjustments to these 2017 Tax Act amounts, as discussed above, were recognized during the third quarter of 2018. However, the Company may adjust these provisional amounts in the fourth quarter of 2018 after assessing additional implementation guidance as it becomes available. Pension Benefits The Company incurs expenses in connection with the Delta Pension Plan ("DPP"). The DPP was acquired as part of the Delta plc acquisition in fiscal 2010 and has no members that are active employees. In order to measure expense and the related benefit obligation, various assumptions are made including discount rates used to value the obligation, expected return on plan assets used to fund these expenses and estimated future inflation rates. These assumptions are based on historical experience as well as current facts and circumstances. An actuarial analysis is used to measure the expense and liability associated with pension benefits. The components of the net periodic pension (benefit) expense for the thirteen and thirty-nine weeks ended September 29, 2018 and September 30, 2017 were as follows: Thirteen Weeks Ended Thirty-nine Weeks Ended Net periodic (benefit) expense: 2018 2017 2018 2017 Interest cost $ 4,400 $ 4,676 $ 13,602 $ 13,475 Expected return on plan assets (5,704 ) (5,277 ) (17,633 ) (15,208 ) Amortization of actuarial loss 750 768 2,318 2,214 Net periodic expense (benefit) $ (554 ) $ 167 $ (1,713 ) $ 481 (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Stock Plans The Company maintains stock‑based compensation plans approved by the shareholders, which provide that the Human Resource Committee of the Board of Directors may grant incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, and bonuses of common stock. At September 29, 2018 , 1,683,908 shares of common stock remained available for issuance under the plans. Under the plans, the exercise price of each option equals the closing market price at the date of the grant. Options vest beginning on the first anniversary of the grant in equal amounts over three to six years or on the grant's fifth anniversary. Expiration of grants is from seven to ten years from the date of grant. Restricted stock units and awards generally vest in equal installments over three years beginning on the first anniversary of the grant. The Company's compensation expense (included in selling, general and administrative expenses) and associated income tax benefits related to stock options and restricted stock for the thirteen and thirty-nine weeks ended September 29, 2018 and September 30, 2017 , respectively, were as follows: Thirteen Weeks Ended Thirty-nine Weeks Ended 2018 2017 2018 2017 Compensation expense $ 2,702 $ 2,710 $ 8,076 $ 7,300 Income tax benefits 676 1,043 2,019 2,811 Fair Value The Company applies the provisions of Accounting Standards Codification 820, Fair Value Measurements (“ASC 820”) which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The provisions of ASC 820 apply to other accounting pronouncements that require or permit fair value measurements. As defined in ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three‑level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value. Trading Securities: The assets and liabilities recorded for the investments held in the Valmont Deferred Compensation Plan of $39,521 ( $39,091 at December 30, 2017) represent mutual funds, invested in debt and equity securities, classified as trading securities in accordance with Accounting Standards Codification 320, Accounting for Certain (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Investments in Debt and Equity Securities , considering the employee's ability to change investment allocation of their deferred compensation at any time. The Company's ownership of shares in Delta EMD Pty. Ltd. (JSE:DTA) is also classified as trading securities. The shares are valued at $1,954 and $1,951 as of September 29, 2018 and December 30, 2017, respectively, which is the estimated fair value. Quoted market prices are available for these securities in an active market and therefore categorized as a Level 1 input. Fair Value Measurement Using: Carrying Value Quoted Prices in Significant Other Significant Assets: Trading Securities $ 41,475 $ 41,475 $ — $ — Fair Value Measurement Using: Carrying Value Quoted Prices in Significant Other Significant Assets: Trading Securities $ 41,042 $ 41,042 $ — $ — Long-Lived Assets The Company's other non-financial assets include goodwill and other intangible assets, which are classified as Level 3 items. These assets are measured at fair value on a non-recurring basis as part of annual impairment testing. Note 5 to these condensed consolidated financial statements contain additional information related to goodwill and intangible asset impairments. Comprehensive Income Comprehensive income includes net earnings, currency translation adjustments, certain derivative-related activity and changes in net actuarial gains/losses from a pension plan. Results of operations for foreign subsidiaries are translated using the average exchange rates during the period. Assets and liabilities are translated at the exchange rates in effect on the balance sheet dates. Accumulated other comprehensive income (loss) consisted of the following at September 29, 2018 and December 30, 2017: Foreign Currency Translation Adjustments Gain/(Loss) on Hedging Activities Defined Benefit Pension Plan Accumulated Other Comprehensive Loss Balance at December 30, 2017 $ (171,399 ) $ 6,357 $ (113,980 ) $ (279,022 ) Current-period comprehensive income (loss) (53,569 ) (381 ) — (53,950 ) Divestiture of grinding media business 9,203 1,215 — 10,418 Balance at September 29, 2018 $ (215,765 ) $ 7,191 $ (113,980 ) $ (322,554 ) (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Subsequent Events On October 18, 2018, the Company acquired CSP Coating Systems of Auckland, New Zealand, to further strengthen the Company's Asia-Pacific market position. CSP Coating Systems provides a wide range of coating services. The acquisition was funded with cash on hand and will be included in the Coatings segment. Revenue Recognition On December 31, 2017, the Company adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) . The Company elected to use the modified retrospective approach for the adoption of the new revenue standard. The cumulative effect of initially applying the new revenue standard was recorded as an adjustment to the opening balance of retained earnings, which impacted the Condensed Consolidated Balance Sheet as follows: Balance Sheet December 30, ASC 606 Adjustments December 31, Assets Inventories $ 420,948 $ (36,243 ) $ 384,705 Contract asset - costs & profits in excess of billings 16,165 51,507 67,672 Liabilities and shareholders' equity Accrued expenses 81,029 2,043 83,072 Deferred income taxes 34,906 3,450 38,356 Retained earnings 1,954,344 9,771 1,964,115 The adoption of ASC 606 had the following impact on the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Earnings for the thirteen and thirty-nine weeks ended September 29, 2018 : Balance Sheet As Reported Balance Excluding ASC 606 Effects Change Assets Inventories $ 399,905 $ 463,184 $ (63,279 ) Contract asset - costs & profits in excess of billings 112,620 26,369 86,251 Liabilities and shareholders' equity Accrued expenses 106,929 101,878 5,051 Deferred income taxes 45,076 40,451 4,625 Retained earnings 2,022,538 2,009,242 13,296 Thirteen Weeks Ended September 29, 2018 Thirty-nine Weeks Ended September 29, 2018 Statement of Earnings As Reported Balance Excluding ASC 606 Effects Change As Reported Balance Excluding ASC 606 Effects Change Net Sales 678,692 $ 666,095 $ 12,597 2,059,781 $ 2,024,921 $ 34,860 Operating Income 38,360 $ 35,697 $ 2,663 165,990 $ 161,289 $ 4,701 The Company determines the appropriate revenue recognition for our contracts by analyzing the type, terms and conditions of each contract or arrangement with a customer. Contracts with customers for all businesses are fixed-price with sales tax excluded from revenue, and do not include variable consideration. Discounts included in contracts with customers, typically early pay discounts, are recorded as a reduction of net sales in the period in which the sale is recognized. Contract revenues are classified as product when the performance obligation is related to the manufacturing of goods. Contract (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) revenues are classified as service when the performance obligation is the performance of a service. Service revenue is primarily related to the Coatings segment. Customer acceptance provisions exist only in the design stage of our products and acceptance of the design by the customer is required before the project is manufactured and delivered to the customer. The Company is not entitled to any compensation solely based on design of the product and does not recognize revenue associated with the design stage. There is one performance obligation for revenue recognition. No general rights of return exist for customers once the product has been delivered and the Company establishes provisions for estimated warranties. The Company does not sell extended warranties for any of its products. Shipping and handling costs associated with sales are recorded as cost of goods sold. The Company elected to use the practical expedient of treating freight as a fulfillment obligation instead of a separate performance obligation and ratably recognize freight expense as the structure is being manufactured, when the revenue from the associated customer contract is being recognized over time. With the exception of the Utility segment and the wireless communication structures product line, the Company’s inventory is interchangeable for a variety of each segment’s customers. The Company elected the practical expedient to not disclose the partially satisfied performance obligation at the end of the period when the contract has an original expected duration of one year or less. In addition, the Company elected the practical expedient to not adjust the amount of consideration to be received in a contract for any significant financing component if payment is expected within twelve months of transfer of control of goods or services; the Company expects all consideration to be received in one year or less at contract inception. Segment and Product Line Revenue Recognition The global Utility segment revenues are derived from manufactured steel and concrete structures for the North America utility industry and offshore and other complex structures used in energy generation and distribution outside of the United States. Steel and concrete utility structures are engineered to customer specifications resulting in limited ability to sell the structure to a different customer if an order is canceled after production commences. The continuous transfer of control to the customer is evidenced either by contractual termination clauses or by our rights to payment for work performed to-date plus a reasonable profit as the products do not have an alternative use to the Company. Since control is transferring over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment. For our steel and concrete utility and wireless communication structure product lines, we generally recognize revenue on an inputs basis, using total production hours incurred to-date for each order as a percentage of total hours estimated to produce the order. The completion percentage is applied to the order’s total revenue and total estimated costs to determine reported revenue, cost of goods sold and gross profit. Production of an order, once started, is typically completed within three months. Revenue from the offshore and other complex structures business is also recognized using an inputs method, based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. External sales agents are used in certain sales of steel and concrete structures; the Company has chosen to use the practical expedient to expense estimated commissions owed to third parties by recognizing them proportionately as the goods are manufactured. The global ESS segment revenues are derived from the manufacture and distribution of engineered metal, composite structures and components for lighting and traffic and roadway safety, engineered access systems, and wireless communication. For the lighting and traffic and roadway safety product lines, revenue is recognized upon shipment or delivery of goods to the customer depending on contract terms, which is the same point in time that the customer is billed. For Access Systems, revenue is generally recognized upon delivery of goods to the customer which is the same point in time that the customer is billed. The wireless communication product line has large regional customers who have unique product specifications for communication structures. When the customer contract includes a cancellation clause that would require them to pay for work completed plus a reasonable margin if an order was canceled, revenue is recognized over time based on hours worked as a percent of total estimated hours to complete production. For the remaining wireless communication product line customers which do not provide a contractual right to bill for work completed on a canceled order, revenue is recognized upon shipment or delivery of the goods to the customer which is the same point in time that the customer is billed. (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The global Coatings segment revenues are derived by providing coating services to customers’ products, which include galvanizing, anodizing, and powder coating. Revenue is recognized once the coating service has been performed and the goods are ready to be picked up or delivered to the customer which is the same time that the customer is billed. The global Irrigation segment revenues are derived from the manufacture of agricultural irrigation equipment and related parts and services for the agricultural industry and tubular products for industrial customers. Revenue recognition for the irrigation segment is generally upon shipment of the goods to the customer which is the same point in time that the customer is billed. The remote monitoring subscription services are primarily billed annually and revenue is recognized on a straight-line basis over the subsequent twelve months. Disaggregation of revenue by product line is disclosed in the Segment footnote. A breakdown by segment of revenue recognized over time and revenue recognized at a point in time for the thirteen and thirty-nine weeks ended September 29, 2018 is as follows: Point in Time Over Time Point in Time Over Time Thirteen weeks ended September 29, 2018 Thirteen weeks ended September 29, 2018 Thirty-nine weeks ended September 29, 2018 Thirty-nine weeks ended September 29, 2018 Utility Support Structures $ 6,090 $ 211,853 $ 6,090 $ 618,243 Engineered Support Structures 235,948 12,483 680,863 29,525 Coatings 74,547 — 217,544 — Irrigation 134,710 3,061 475,744 8,692 Other — — 23,080 — Total $ 451,295 $ 227,397 $ 1,403,321 $ 656,460 The Company's contract asset as of September 29, 2018 is $112,620 . The contract assets attributable to the cumulative effect from the adoption of the new revenue recognition guidance was $51,507 ; the contract asset at December 30, 2017, attributable to the offshore and other complex structures product line, was $16,165 . Both steel and concrete utility customers are generally invoiced upon shipment or delivery of the goods to the customer's specified location and there are normally no up-front or progress payments. The offshore and complex steel structures business invoices customers a number of ways including advanced billings, progress billings, and billings upon shipment. At September 29, 2018 and December 30, 2017, the contract liability for revenue recognized over time was $5,088 and $7,368 . The contract liability is included in Accrued Expenses on the condensed consolidated balance sheets. During the thirty-nine weeks ended September 29, 2018, the Company recognized $4,456 of revenue that was included in the liability as of December 30, 2017. The revenue recognized was due to applying advance payments received for projects completed during the period. Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-9, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification ("ASC") 605, Revenue Recognition . Effective December 31, 2017, the Company adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). The Company elected the modified retrospective approach for the adoption of the new revenue standard, resulting in a credit to retained earnings being recognized for $9,771 . The Company calculated the cumulative effect on revenue of approximately $51,507 with $13,121 of pre-tax operating income; these were customer orders for the steel utility, concrete utility, and wireless communication structures product lines at various stages of production at December 30, 2017. (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) In March 2017, the FASB issued ASU 2017-07, Presentation of Net Periodic Benefit Cost Related to Defined Benefit Plans, which amends the income statement presentation requirements for the components of net periodic benefit cost for an entity's defined benefit pension and post-retirement plans. The Company adopted this ASU in the first quarter of 2018, recognizing the DPP net periodic pension expense within Other income (expense). The Company also reclassified $167 and $481 of DPP net periodic pension expense for third quarter and first three quarters of 2017 out of selling, general, and administrative expense and into Other expense. In December 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires amounts generally described as restricted cash and restricted cash equivalents to be included within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. The Company adopted the ASU in the first quarter of 2018, recasting the beginning-of-period and end-of-period total cash and cash equivalent amounts on the statement of cash flows to include the £10,000 restricted cash account for the pension plan at December 31, 2016, thus reducing cash flows from operating activities by $12,568 in 2017. The Company did not have any restricted cash at September 29, 2018 or December 30, 2017. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 29, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS On August 3, 2018, the Company purchased approximately 72% of the outstanding shares of Walpar, LLC ("Walpar") for $57,805 in cash. Walpar is an industry leader in the design, engineering and manufacturing of overhead sign structures for the North America transportation market. Walpar is located in Birmingham, Alabama and its operations are reported in the Engineered Support Structures segment. The transaction was funded with cash on hand and the purchase of the remaining 28% of the business will occur in January 2019. The acquisition of Walpar was completed to expand the Company's product offering in the sign structure market. The preliminary fair value measurement disclosed below is subject to management reviews and completion of the fair value measurements of the assets acquired and liabilities assumed. Customer relationships will be amortized over 14 years and the trade name has an indefinite life. Goodwill is not deductible for tax purposes. The Company expects the purchase price allocation to be finalized in the second quarter of 2019. The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed of Walpar as of the date of acquisition: At August 3, 2018 Current assets $ 14,729 Customer relationships 32,000 Trade name 4,300 Goodwill 40,919 Total fair value of assets acquired $ 91,948 Current liabilities 2,185 Deferred taxes 9,090 Total fair value of liabilities assumed $ 11,275 Non-controlling interests 22,868 Net assets acquired $ 57,805 On August 3, 2018, the Company acquired 75% of the outstanding shares of Convert Italia SpA ("Convert") for $43,504 in cash. Additional purchase price will be paid contingent on Convert realizing specific EBITDA and revenue targets in calendar years 2018 and 2020. The Company recorded $18,760 in estimated contingent consideration liability. Convert is a designer and provider of engineered solar tracker solutions that is headquartered in Italy, with offices in Brazil and Argentina. The Company acquired Convert to grow market adjacencies in the Utility Support Structures segment. The preliminary fair value measurements disclosed below are subject to management reviews and completion of the fair value measurements of the assets acquired and liabilities assumed. Patents and proprietary technology will be amortized over 15 years and the trade name has an indefinite life. Goodwill is not deductible for tax purposes. The Company expects the fair value measurement process and purchase price allocation to be finalized in the third quarter of 2019. The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed of Convert as of the date of acquisition: 2) ACQUISITIONS (Continued) At August 3, 2018 Current assets $ 18,349 Other assets 3,166 Patent and Proprietary Technology 16,554 Trade name 8,701 Goodwill 41,432 Total fair value of assets acquired $ 88,202 Current liabilities 5,376 Contingent consideration liability 18,760 Deferred taxes 6,061 Total fair value of liabilities assumed $ 30,197 Non-controlling interests 14,501 Net assets acquired $ 43,504 On August 1, 2018, the Company acquired the operational assets of Derit Infrastructure Pvt. Ltd. ("Derit") for $14,700 in cash, net of assumed liabilities. The Company acquired the net assets at fair value with no value assigned to intangible assets in the preliminary purchase price allocation. Derit has a manufacturing facility in India with production capabilities for steel lattice structures for power transmission, wireless communication, and a provider of zinc galvanizing services. Derit was acquired to provide the Company with lattice structure manufacturing capabilities and to further expand the geographic footprint of the galvanizing business. The majority of the business will be reported in the Utility Support Structures segment, while the galvanizing business will be reported in the Coatings segment. The preliminary fair value measurement is subject to management review and is expected to be finalized in the fourth quarter of 2018. Proforma disclosures were omitted as this business does not have a significant impact on the Company's financial results. On January 26, 2018, the Company acquired 60% of the assets of Torrent Engineering and Equipment ("Torrent") for $4,800 in cash. Torrent operates in Indiana and is an integrator of prefabricated pump stations that involves designing high pressure water and compressed air process systems. Torrent has annual sales of approximately $9,000 . In the purchase price allocation, goodwill of $3,922 and $4,020 of customer relationships and other intangible assets were recorded. A portion of the goodwill is deductible for tax purposes. Torrent is included in the Irrigation segment and was acquired to expand the Company's water management capabilities. The purchase price allocation was finalized in the second quarter of 2018. On July 31, 2017, the Company purchased Aircon Guardrails Private Limited ("Aircon") for $5,362 in cash, net of cash acquired, plus assumed liabilities. Aircon produces highway safety systems including guardrails, structural metal products, and solar structural products in India with annual sales of approximately $10,000 . In the purchase price allocation, goodwill of $3,327 and $2,109 of customer relationships and other intangible assets were recorded. Goodwill is not deductible for tax purposes. This business is included in the Engineered Support Structures segment and was acquired to expand the Company's geographic presence in the Asia-Pacific region. The purchase price allocation was finalized in the fourth quarter of 2017. Proforma disclosures were omitted as this business does not have a significant impact on the Company's financial results. 2) ACQUISITIONS (Continued) The Company's condensed consolidated statements of earnings for the thirteen and thirty-nine weeks ended September 29, 2018 included net sales of $11,803 and $13,057 and net earnings of $1,198 and $1,055 resulting from the Walpar, Convert, and Torrent acquisitions. The proforma effect of these acquisitions on the third quarter and first three quarters of 2018 and 2017 is as follows: Thirteen weeks ended September 29, 2018 Thirteen weeks ended September 30, 2017 Thirty-nine weeks ended September 29, 2018 Thirty-nine weeks ended September 30, 2017 Net sales $ 683,608 $ 694,713 $ 2,094,092 $ 2,078,680 Net earnings 4,860 36,482 78,950 123,986 Earnings per share-diluted 0.22 1.60 3.50 5.46 Acquisitions of Noncontrolling Interests In March 2018, the Company acquired the remaining 10% of Valmont Industria e Commercio Ltda. that it did not own for $5,510 . As this transaction was for the acquisition of all of the remaining shares of a consolidated subsidiary with no change in control, it was recorded within shareholders' equity and as a financing activity in the Consolidated Statements of Cash Flows. |
DIVESTITURE
DIVESTITURE | 9 Months Ended |
Sep. 29, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DIVESTITURE | On April 30, 2018, the Company completed the sale of Donhad, its grinding media business in Australia, reported in the Other segment. The business was sold because it did not fit the long-term strategic plans for the Company. The grinding media business historical annual sales, operating profit, and net assets are not significant for discontinued operations presentation. The grinding media business had operating income/(loss) of ($913) for the thirty-nine weeks ended September 29, 2018, and $(217) and $3,728 for the thirteen and thirty-nine weeks ended September 30, 2017. The Company received Australian $82,500 (U.S. $62,518 ) but is subject to a working capital target settlement with the buyer that is expected to be finalized before the end of fiscal 2018. The assets and liabilities of the grinding media business at closing on April 30, 2018 were as follows: Receivables, net $ 9,848 Inventories 15,945 Net property, plant, and equipment 13,815 Goodwill and intangible assets 27,153 Other assets 1,388 Total assets $ 68,149 Accounts payable $ 7,125 Accrued expenses 2,484 Deferred income taxes 2,187 Total liabilities $ 11,796 Net assets $ 56,353 The pre-tax loss from the divestiture is reported in other income (expense). The loss is comprised of the proceeds from buyer, less deal-related costs, less the net assets of the business which resulted in a gain of $4,334 . Offsetting this amount is a $ (10,418) realized loss on foreign exchange translation adjustments and net investment hedges previously reported in shareholders' equity. Pre-tax gain from divestiture, before recognition of currency translation loss $ 4,334 Recognition of cumulative currency translation loss and hedges (out of OCI) (10,418 ) Net pre-tax loss from divestiture of the grinding media business $ (6,084 ) The transaction did not result in a taxable capital gain as the cash proceeds were less than the tax carrying value of the business. There is an insignificant tax benefit from the tax deductibility of deal related expenses. |
RESTRUCTURING ACTIVITIES
RESTRUCTURING ACTIVITIES | 9 Months Ended |
Sep. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING ACTIVITIES | RESTRUCTURING ACTIVITIES During 2018, the Company decided upon certain regional restructuring activities (the "2018 Plan") primarily in the ESS segment. The Company expects to incur $14,500 of pre-tax restructuring expenses in cost of sales and $12,500 of pre-tax restructuring expense in SG&A in 2018. Included in the $27,000 are expected pre-tax asset impairments of approximately $8,000 . The following pre-tax expense were recognized during the third quarter of 2018: ESS Utility Corporate Total Severance $ 1,706 $ — $ — $ 1,706 Other cash restructuring expenses 326 497 — 823 Asset impairments/net loss on disposals 1,406 — — 1,406 Total cost of sales 3,438 497 — 3,935 Severance 1,757 — — 1,757 Other cash restructuring expenses 551 — — 551 Asset impairments/net loss on disposals — — — — Total selling, general and administrative expenses 2,308 — — 2,308 Consolidated total $ 5,746 $ 497 $ — $ 6,243 In the first nine-months of 2018, the Company recognized the following pre-tax restructuring expenses: ESS Utility Corporate Total Severance $ 3,732 $ 515 $ — $ 4,247 Other cash restructuring expenses 478 2,228 — 2,706 Asset impairments/net loss on disposals 3,812 — — 3,812 Total cost of sales 8,022 2,743 — 10,765 Severance 5,268 — — 5,268 Other cash restructuring expenses 1,118 — 126 1,244 Asset impairments/net loss on disposals 385 — — 385 Total selling, general and administrative expenses 6,771 — 126 6,897 Consolidated total $ 14,793 $ 2,743 $ 126 $ 17,662 Liabilities recorded for the restructuring plans and changes therein for the first nine-months of 2018 were as follows: Balance at December 30, 2017 Recognized Restructuring Expense Costs Paid or Otherwise Settled Balance at September 29, 2018 Severance $ — $ 9,515 $ (9,095 ) $ 420 Other cash restructuring expenses 1,216 3,950 (3,983 ) 1,183 Total $ 1,216 $ 13,465 $ (13,078 ) $ 1,603 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Amortized Intangible Assets The components of amortized intangible assets at September 29, 2018 and December 30, 2017 were as follows: September 29, 2018 Gross Accumulated Weighted Customer Relationships $ 218,492 $ 130,082 13 years Patents & Proprietary Technology 23,846 4,440 14 years Other 7,991 6,868 5 years $ 250,329 $ 141,390 December 30, 2017 Gross Accumulated Weighted Customer Relationships $ 200,810 $ 131,062 13 years Patents & Proprietary Technology 6,693 3,999 11 years Other 8,532 7,228 5 years $ 216,035 $ 142,289 Amortization expense for intangible assets for the thirteen and thirty-nine weeks ended September 29, 2018 and September 30, 2017 , respectively was as follows: Thirteen Weeks Ended Thirty-nine Weeks Ended 2018 2017 2018 2017 3,721 4,025 11,176 11,792 Estimated annual amortization expense related to finite‑lived intangible assets is as follows: Estimated 2018 $ 15,264 2019 16,081 2020 14,969 2021 12,885 2022 10,740 The useful lives assigned to finite‑lived intangible assets included consideration of factors such as the Company’s past and expected experience related to customer retention rates, the remaining legal or contractual life of the underlying arrangement that resulted in the recognition of the intangible asset and the Company’s expected use of the intangible asset. (5) GOODWILL AND INTANGIBLE ASSETS (Continued) Non-amortized intangible assets Intangible assets with indefinite lives are not amortized. The carrying values of trade names at September 29, 2018 and December 30, 2017 were as follows: September 29, December 30, Year Acquired Newmark $ 11,111 $ 11,111 2004 Valmont SM 8,283 9,973 2014 Webforge 9,105 9,432 2010 Convert Italia S.p.A 8,703 — 2018 Ingal EPS/Ingal Civil Products 7,424 7,690 2010 Shakespeare 4,000 4,000 2014 Other 21,128 22,647 $ 69,754 $ 64,853 In its determination of these intangible assets as indefinite‑lived, the Company considered such factors as its expected future use of the intangible asset, legal, regulatory, technological and competitive factors that may impact the useful life or value of the intangible asset and the expected costs to maintain the value of the intangible asset. The Company expects that these intangible assets will maintain their value indefinitely. Accordingly, these assets are not amortized. The Company’s trade names were tested for impairment in the third quarter of 2018. The values of each trade name was determined using the relief-from-royalty method. Based on this evaluation, the value of the offshore and other complex steel structures (Valmont SM) trade name was deemed to be impaired and the Company recorded a charge of $1,425 . No other trade names were determined to be impaired. Goodwill The carrying amount of goodwill by segment as of September 29, 2018 and December 30, 2017 was as follows: Engineered Utility Coatings Irrigation Other Total Gross balance at December 30, 2017 $ 170,076 $ 90,248 $ 76,696 $ 19,778 $ 15,814 $ 372,612 Accumulated impairment losses (18,670 ) — (16,222 ) — — (34,892 ) Balance at December 30, 2017 151,406 90,248 60,474 19,778 15,814 337,720 Acquisitions 40,919 41,432 — 5,503 — 87,854 Asset impairment — (14,355 ) — — — (14,355 ) Divestiture of grinding media — — — — (15,814 ) (15,814 ) Foreign currency translation (4,797 ) (489 ) (380 ) (145 ) — (5,811 ) Balance at September 29, 2018 $ 187,528 $ 116,836 $ 60,094 $ 25,136 $ — $ 389,594 (5) GOODWILL AND INTANGIBLE ASSETS (Continued) The Company’s annual impairment test of goodwill was performed during the third quarter of 2018, using the discounted cash flow method. The Company previously highlighted significant, adverse challenges in the wind energy market in Northern Europe that impacts our offshore and other complex steel structures business. A lack of protective tariffs has led to an extremely competitive environment in that region. Lower near-term financial projections and an approximately 15% decline in the undiscounted terminal value, when compared to the 2017 annual impairment test, is a result of challenging onshore wind and energy transmission structures pricing that is difficult to predict when it will recover. This resulted in an estimated fair value of the offshore and other complex steel structures reporting unit below the Company’s investment in this business. As a result, a goodwill impairment was recorded in the third quarter totaling $14,355 , which represents all of the goodwill of the offshore and other complex steel reporting unit. For the remaining reporting units, the Company determined that its goodwill was not impaired, as the valuation of the reporting units exceeded their respective carrying values. |
CASH FLOW SUPPLEMENTARY INFORMA
CASH FLOW SUPPLEMENTARY INFORMATION | 9 Months Ended |
Sep. 29, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
CASH FLOW SUPPLEMENTARY INFORMATION | CASH FLOW SUPPLEMENTARY INFORMATION The Company considers all highly liquid temporary cash investments purchased with an original maturity of three months or less at the time of purchase to be cash equivalents. Cash payments for interest and income taxes (net of refunds) for the thirty-nine weeks ended September 29, 2018 and September 30, 2017 were as follows: 2018 2017 Interest $ 23,624 $ 22,732 Income taxes 36,855 52,823 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 29, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table provides a reconciliation between Basic and Diluted earnings per share (EPS): Basic EPS Dilutive Diluted EPS Thirteen weeks ended September 29, 2018: Net earnings attributable to Valmont Industries, Inc. $ 4,448 $ — $ 4,448 Shares outstanding (000 omitted) 22,215 137 22,352 Per share amount $ 0.20 $ — $ 0.20 Thirteen weeks ended September 30, 2017: Net earnings attributable to Valmont Industries, Inc. $ 35,208 $ — $ 35,208 Shares outstanding (000 omitted) 22,527 224 22,751 Per share amount $ 1.56 $ (0.01 ) $ 1.55 Thirty-nine weeks ended September 29, 2018: Net earnings attributable to Valmont Industries, Inc. $ 76,689 $ — $ 76,689 Shares outstanding (000 omitted) 22,421 153 22,574 Per share amount $ 3.42 $ (0.02 ) $ 3.40 Thirty-nine weeks ended September 30, 2017: Net earnings attributable to Valmont Industries, Inc. $ 119,851 $ — $ 119,851 Shares outstanding (000 omitted) 22,505 212 22,717 Per share amount $ 5.33 $ (0.05 ) $ 5.28 Basic and diluted earnings per share in the third quarter and first three quarters of 2018 were impacted by the 2018 Restructuring Plan costs of $7,858 , after-tax ( $0.35 per share) and $17,478 , after-tax ( $0.77 per share), respectively. In the third quarter of 2018, the Company impaired the goodwill and trade name for its offshore and other complex steel structures business and paid off the 2020 bonds, resulting in a charge of $15,479 , after tax ( $0.69 per share) and $11,115 , after tax ( $0.50 per share), respectively. The Company incurred acquisition due diligence costs of $2,349 , after tax ( $0.11 per share) and $3,155 , after tax ( $0.14 per share) in the third quarter and first three quarters of 2018, respectively. The Company divested of its grinding media business in the second quarter of 2018 resulting in a loss of $5,455 , after-tax ( $0.24 per share). At September 29, 2018 and September 30, 2017 , there were 190,021 and 0 outstanding stock options with exercise prices exceeding the market price of common stock that were excluded from the computation of diluted earnings per share, respectively. |
HEDGING ACTIVITIES
HEDGING ACTIVITIES | 9 Months Ended |
Sep. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
HEDGING ACTIVITIES | HEDGING ACTIVITIES The Company manages interest rate risk, commodity price risk, and foreign currency risk related to foreign currency denominated transactions and investments in foreign subsidiaries. Depending on the circumstances, the Company may manage these risks by utilizing derivative financial instruments. Some derivative financial instruments are marked to market and recorded in the Company's consolidated statements of earnings, while others may be accounted for as fair value, cash flow, or net investment hedges. Derivative financial instruments have credit and market risk. The Company manages these risks of derivative instruments by monitoring limits as to the types and degree of risk that can be taken, and by entering into transactions with counterparties who are recognized, stable multinational banks. Fair value of derivative instruments at September 29, 2018 and December 30, 2017 are as follows: Derivatives designated as hedging instruments: Balance sheet location September 29, 2018 December 30, 2017 Commodity forward contracts Prepaid expenses and other assets $ 854 $ — Foreign currency forward contracts Prepaid expenses and other assets 4,534 — Foreign currency forward contracts Accrued expenses — (826 ) Cross currency swap contracts Prepaid expenses and other assets 206 — Cross currency swap contracts Accrued expenses (2,715 ) — $ 2,879 $ (826 ) Gains (losses) on derivatives recognized in the condensed consolidated statements of earnings for the thirteen and thirty-nine weeks ended September 29, 2018 and September 30, 2017 are as follows: Thirteen weeks ended Thirty-nine weeks ended Derivatives designated as hedging instruments: Statements of earnings location September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Commodity forward contracts Product cost of sales $ 717 $ — $ 717 $ — Foreign currency forward contracts Other income (expense) 230 — 230 — Interest rate hedges Interest expense (395 ) (19 ) (439 ) (56 ) Cross currency swap contracts Interest expense 206 — 206 — $ 758 $ (19 ) $ 714 $ (56 ) Cash Flow Hedges In 2018, the Company entered into steel hot rolled coil (HRC) forward contracts which qualified as a cash flow hedge of the variability in the cash flows attributable to future steel purchases. The forward contracts have a notional amount of $8,469 for the purchase of 3,500 short tons for each month from July 2018 to September 2018 and a notional amount of $15,563 for the purchase of 6,500 short tons for each month from October 2018 to December 2018. The gain/(loss) realized upon settlement is recorded in product cost of sales in the condensed consolidated statements of earnings over average inventory turns. (8) HEDGING ACTIVITIES (Continued) On June 19, 2018, the Company issued and sold $200,000 aggregate principal amount of the Company’s 5.00% senior notes due 2044 and $55,000 aggregate principal amount of the Company’s 5.25% senior notes due 2054. During the second quarter of 2018, the Company executed contracts to hedge the risk of potential fluctuations in the treasury rates on the 2044 Notes and 2054 Notes which would change the amount of net proceeds received from the debt offering. These contracts had a combined notional amount of $175,000 . On June 8, 2018, these contracts were settled with the Company paying $2,467 to the counterparties which was recorded in OCI and will be amortized as an increase to interest expense over the term of the debt. Due to the retirement of the 2020 bonds in July 2018, the Company wrote off the remaining $411 unamortized loss on the related cash flow hedge. Net Investment Hedges The Company previously executed two six-month foreign currency forward contracts which qualified as net investment hedges, in order to mitigate foreign currency risk on the grinding media business that is denominated in both Australian dollars and British pounds. Due to the sale of the grinding media business in the second quarter of 2018, the Company reclassified the net investment hedge loss of $1,621 ( $1,215 after tax) from OCI to loss from divestiture of grinding media business in the Statements of Earnings. In the second quarter of 2018, the Company entered into two foreign currency forward contracts to mitigate foreign currency risk of the Company's investment in its Australian dollar and Euro denominated businesses. The forward contracts, which qualify as net investment hedges, have a maturity date of May 2020 and notional amounts to sell Australian dollars and Euro to receive $100,000 and $50,000 , respectively. Effective in the third quarter of 2018, in conjunction with the adoption of recently issued hedging accounting guidance (see Note 1 for further information), the Company elected as an accounting policy to change its method of assessing effectiveness for all net investment hedges from the forward method to the spot method. As a result of this election, all existing and future net investment hedges will be accounted for under the spot method. As an additional accounting policy election to be applied to similar hedges under this new standard, the initial value of any component excluded from the assessment of effectiveness will be recognized in income or expense using a systematic and rational method over the life of the hedging instrument. Due to the change in the method used to assess effectiveness from the forward to the spot method in the third quarter of 2018, the Euro and Australian dollar net investment hedges were de-designated. The forward contracts were then re-designated as net investment hedges under the spot method and the initial excluded component value related to the Australian dollar and Euro net investment hedges were $538 and $3,190 , respectively, which the Company has elected to amortize in other income (expense) in the condensed consolidated statements of earnings using the straight-line method over the remaining term of the contracts. On August 24, 2018, the Company entered into three fixed-for-fixed cross currency swaps (“CCS”), swapping U.S. dollar principal and interest payments on a portion of its 5.00% senior unsecured notes due 2044 for Danish krone (DKK) and Euro denominated payments. The CCS were entered into in order to mitigate foreign currency risk on the Company's Euro and DKK investments and to reduce interest expense. Interest is exchanged twice per year on April 1 and October 1. (8) HEDGING ACTIVITIES (Continued) Key terms of the three CCS are as follows: Currency Notional Amount Termination Date Swapped Interest Rate Set Settlement Amount Danish Kroner, DKK $ 60,000 October 1, 2023 2.52% DKK 386,118 Euro $ 25,000 October 1, 2020 2.14% €21,580 Euro $ 10,000 October 1, 2021 2.29% €8,631 The Company designated the full notional amount of the three CCS ( $95,000 ) as a hedge of the net investment in certain Danish and European subsidiaries under the spot method, with all changes in the fair value of the CCS that are included in the assessment of effectiveness (changes due to spot foreign exchange rates) are recorded as cumulative foreign currency translation within OCI, and will remain in OCI until either the sale or substantially complete liquidation of the related subsidiaries. Net interest receipts will be recorded as a reduction of interest expense over the life of the CCS. |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Sep. 29, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT On June 19, 2018, the Company issued and sold $200,000 aggregate principal amount of the Company’s 5.00% senior notes due 2044 and $55,000 aggregate principal amount of the Company’s 5.25% senior notes due 2054. On July 9, 2018, the Company redeemed all $250,200 of the 2020 bonds. Long-term debt is as follows: September 29, December 30, 5.00% senior unsecured notes due 2044(a) $ 450,000 $ 250,000 5.25% senior unsecured notes due 2054(b) 305,000 250,000 Unamortized discount on 5.00% and 5.25% senior unsecured notes (a)(b) (21,547 ) (4,312 ) 6.625% senior unsecured notes due 2020(c) — 250,200 Unamortized premium on 6.625 senior unsecured notes (c) — 2,545 Revolving credit agreement (d) — — IDR Bonds(e) 8,500 8,500 Other notes 3,199 4,033 Debt issuance costs (8,138 ) (6,112 ) Long-term debt 737,014 754,854 Less current installments of long-term debt 829 966 Long-term debt, excluding current installments $ 736,185 $ 753,888 (a) The 5.00% senior unsecured notes due 2044 include an aggregate principal amount of $450,000 on which interest is paid and an unamortized discount balance of $13,992 at September 29, 2018. The notes bear interest at 5.000% per annum and are due on October 1, 2044. The discount is amortized and recognized as interest expense as interest payments are made over the term of the notes. The notes may be repurchased prior to maturity in whole, or in part, at any time at 100% of their principal amount plus a make-whole premium and accrued and unpaid interest. These notes are guaranteed by certain subsidiaries of the Company. (9) LONG-TERM DEBT (Continued) (b) The 5.25% senior unsecured notes due 2054 include an aggregate principal amount of $305,000 on which interest is paid and an unamortized discount balance of $7,555 at September 29, 2018. The notes bear interest at 5.250% per annum and are due on October 1, 2054. The discount is amortized and recognized as interest expense as interest payments are made over the term of the notes. The notes may be repurchased prior to maturity in whole, or in part, at any time at 100% of their principal amount plus a make-whole premium and accrued and unpaid interest. These notes are guaranteed by certain subsidiaries of the Company. (c) On June 11, 2018, the Company notified the holders of the 2020 bonds of its plan to redeem all of these bonds. On July 9, 2018, the Company redeemed all $250,200 of the 2020 bonds at a make-whole redemption price equal to approximately $266,000 plus approximately $3,600 of accrued and unpaid interest on the notes from April 20, 2018 to July 8, 2018. The Company recognized $14,820 of redemption related expenses, including the recognition of the unamortized premium, in the third quarter of 2018. (d) On October 18, 2017, the Company amended and restated its revolving credit facility with JP Morgan Chase Bank, N.A., as Administrative Agent, and the other lenders party thereto. The credit facility provides for $600,000 of committed unsecured revolving credit loans. The Company may increase the credit facility by up to an additional $200,000 at any time, subject to lenders increasing the amount of their commitments. This amendment extends the maturity date of the credit facility from October 17, 2019 to October 18, 2022 and increases the available borrowings in foreign currencies from $200 million to $400 million . The interest rate on the borrowings will be, at the Company's option, either: (i) LIBOR (based on a 1, 2, 3 or 6 month interest period, as selected by the Company) plus 100 to 162.5 basis points, depending on the credit rating of the Company's senior debt published by Standard & Poor's Rating Services and Moody's Investors Service, Inc., or; (ii) the higher of • the prime lending rate, • the Federal Funds rate plus 50 basis points, and • LIBOR (based on a 1 month interest period) plus 100 basis points, plus, in each case, 0 to 62.5 basis points, depending on the credit rating of the Company's senior debt published by Standard & Poor's Rating Services and Mood's Investors Service, Inc. At September 29, 2018, the Company had no outstanding borrowings under the revolving credit facility. The revolving credit facility has a maturity date of October 18, 2022 and contains certain financial covenants that may limit additional borrowing capability under the agreement. At September 29, 2018, the Company had the ability to borrow $585,350 under this facility, after consideration of standby letters of credit of $14,650 associated with certain insurance obligations. We also maintain certain short-term bank lines of credit totaling $123,613 , $120,312 of which was unused at September 29, 2018. (e) The Industrial Development Revenue Bonds were issued to finance the construction of a manufacturing facility in Jasper, Tennessee. Variable interest is payable until final maturity on June 1, 2025. The effective interest rates at September 29, 2018 and December 30, 2017 were 2.96% and 2.00% , respectively. (9) LONG-TERM DEBT (Continued) The lending agreements include certain maintenance covenants, including financial leverage and interest coverage. The Company was in compliance with all financial debt covenants at September 29, 2018. The minimum aggregate maturities of long-term debt for 2018 is $242 and each of the five years following 2018 are: $815 , $814 , $813 , $514 and $0 . The obligations arising under the 5.00% senior unsecured notes due 2044, the 5.25% senior unsecured notes due 2054, and the revolving credit facility are guaranteed by the Company and its wholly-owned subsidiaries PiRod, Inc., Valmont Coatings, Inc., Valmont Newmark, Inc., and Valmont Queensland Pty. Ltd. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 9 Months Ended |
Sep. 29, 2018 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS In the fourth quarter of 2017, the Company's management structure and reporting was changed to reflect management's expectations of the future growth of certain product lines and to take into consideration the expected divestiture of the grinding media business which historically was reported in the Energy and Mining segment. Grinding media is reported in "Other" and was sold in the second quarter of 2018. The access systems applications product line is now part of the Engineered Support Structures ("ESS") segment and the offshore and other complex structures product line is now part of the Utility segment. The segment financial information has been accordingly reclassified in this report to reflect these changes, for all periods presented. The Company has four reportable segments based on its management structure. Each segment is global in nature with a manager responsible for segment operational performance and the allocation of capital within the segment. Net corporate expense is net of certain service‑related expenses that are allocated to business units generally on the basis of employee headcounts. Reportable segments are as follows: ENGINEERED SUPPORT STRUCTURES: This segment consists of the manufacture of engineered metal and composite poles, towers, and components for lighting, traffic, and wireless communication markets, engineered access systems, integrated structure solutions for smart cities, and highway safety products; UTILITY SUPPORT STRUCTURES: This segment consists of the manufacture of engineered steel and concrete structures for the global utility transmission, distribution, and generation applications, renewable energy generation equipment, and inspection services; COATINGS: This segment consists of galvanizing, painting, and anodizing services; and IRRIGATION: This segment consists of the manufacture of agricultural irrigation equipment, parts, services, tubular products, water management solutions, and technology for precision agriculture. In addition to these four reportable segments, the Company had other businesses and activities that individually are not more than 10% of consolidated sales, operating income or assets. This includes the manufacture of forged steel grinding media for the mining industry and is reported in the "Other" category. The Company evaluates the performance of its business segments based upon operating income and invested capital. The Company does not allocate LIFO expense, interest expense, non-operating income and deductions, or income taxes to its business segments. (10) BUSINESS SEGMENTS (Continued) Summary by Business Thirteen Weeks Ended Thirty-nine Weeks Ended September 29, September 30, September 29, September 30, SALES: Engineered Support Structures segment: Lighting, Traffic, and Highway Safety Products $ 183,184 $ 165,031 $ 522,558 $ 467,307 Communication Products 35,985 46,324 109,690 121,613 Access Systems 32,355 34,909 94,941 99,096 Engineered Support Structures segment 251,524 246,264 727,189 688,016 Utility Support Structures segment: Steel 161,847 160,952 471,947 472,385 Concrete 27,715 18,811 81,562 67,921 Engineered Solar Tracker Solutions 6,090 — 6,090 — Offshore and Other Complex Steel Structures 22,617 25,046 66,251 75,372 Utility Support Structures segment 218,269 204,809 625,850 615,678 Coatings segment 90,433 82,593 266,952 235,842 Irrigation segment 140,175 147,428 491,064 502,939 Other — 19,800 23,080 60,466 Total 700,401 700,894 2,134,135 2,102,941 INTERSEGMENT SALES: Engineered Support Structures segment 3,093 1,589 16,801 18,987 Utility Support Structures segment 326 1,235 1,517 2,452 Coatings segment 15,886 14,913 49,408 44,230 Irrigation segment 2,404 2,378 6,628 6,283 Other — — — — Total 21,709 20,115 74,354 71,952 NET SALES: Engineered Support Structures segment 248,431 244,675 710,388 669,029 Utility Support Structures segment 217,943 203,574 624,333 613,226 Coatings segment 74,547 67,680 217,544 191,612 Irrigation segment 137,771 145,050 484,436 496,656 Other — 19,800 23,080 60,466 Total $ 678,692 $ 680,779 $ 2,059,781 $ 2,030,989 OPERATING INCOME: Engineered Support Structures segment $ 16,499 $ 16,986 $ 36,411 $ 46,738 Utility Support Structures segment 2,090 22,845 46,298 69,446 Coatings segment 14,373 14,577 41,108 36,091 Irrigation segment 21,302 18,235 82,917 83,196 Other — (217 ) (913 ) 3,728 Adjustment to LIFO inventory valuation method (2,780 ) (1,626 ) (5,512 ) (2,839 ) Corporate (13,124 ) (10,710 ) (34,319 ) (33,164 ) Total $ 38,360 $ 60,090 $ 165,990 $ 203,196 |
GUARANTOR_NON-GUARANTOR FINANCI
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | 9 Months Ended |
Sep. 29, 2018 | |
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | |
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION The Company has two tranches of senior unsecured notes. All of the senior notes are guaranteed, jointly, severally, fully and unconditionally (subject to certain customary release provisions, including sale of the subsidiary guarantor, or sale of all or substantially all of its assets) by certain of the Company’s current and future direct and indirect domestic and foreign subsidiaries (collectively the “Guarantors”), excluding its other current domestic and foreign subsidiaries which do not guarantee the debt (collectively referred to as the “Non-Guarantors”). All Guarantors are 100% owned by the parent company. Consolidated financial information for the Company ("Parent"), the Guarantor subsidiaries and the Non-Guarantor subsidiaries is as follows: CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the Thirteen weeks ended September 29, 2018 Parent Guarantors Non- Eliminations Total Net sales $ 293,070 $ 132,059 $ 319,129 $ (65,566 ) $ 678,692 Cost of sales 227,467 100,130 252,353 (65,598 ) 514,352 Gross profit 65,603 31,929 66,776 32 164,340 Selling, general and administrative expenses 51,159 12,908 61,913 — 125,980 Operating income 14,444 19,021 4,863 32 38,360 Other income (expense): Interest expense (10,511 ) (3,600 ) (443 ) 3,600 (10,954 ) Interest income 174 47 4,379 (3,600 ) 1,000 Other (13,765 ) 15 1,426 — (12,324 ) (24,102 ) (3,538 ) 5,362 — (22,278 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries (9,658 ) 15,483 10,225 32 16,082 Income tax expense (benefit) (4,497 ) 4,732 8,882 (26 ) 9,091 Earnings before equity in earnings of nonconsolidated subsidiaries (5,161 ) 10,751 1,343 58 6,991 Equity in earnings of nonconsolidated subsidiaries 9,609 4,041 — (13,650 ) — Net earnings 4,448 14,792 1,343 (13,592 ) 6,991 Less: Earnings attributable to noncontrolling interests — — (2,543 ) — (2,543 ) Net earnings attributable to Valmont Industries, Inc. $ 4,448 $ 14,792 $ (1,200 ) $ (13,592 ) $ 4,448 (11) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the Thirty-nine weeks ended September 29, 2018 Parent Guarantors Non- Eliminations Total Net sales $ 906,978 $ 386,793 $ 966,764 $ (200,754 ) $ 2,059,781 Cost of sales 683,740 293,238 776,254 (202,030 ) 1,551,202 Gross profit 223,238 93,555 190,510 1,276 508,579 Selling, general and administrative expenses 147,949 37,360 157,280 — 342,589 Operating income 75,289 56,195 33,230 1,276 165,990 Other income (expense): Interest expense (32,788 ) (11,229 ) (1,031 ) 11,229 (33,819 ) Interest income 655 62 14,225 (11,229 ) 3,713 Other (15,773 ) 41 (1,973 ) — (17,705 ) (47,906 ) (11,126 ) 11,221 — (47,811 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 27,383 45,069 44,451 1,276 118,179 Income tax expense (benefit) 6,181 12,260 17,525 62 36,028 Earnings before equity in earnings of nonconsolidated subsidiaries 21,202 32,809 26,926 1,214 82,151 Equity in earnings of nonconsolidated subsidiaries 55,487 37,939 — (93,426 ) — Net earnings 76,689 70,748 26,926 (92,212 ) 82,151 Less: Earnings attributable to noncontrolling interests — — (5,462 ) — (5,462 ) Net earnings attributable to Valmont Industries, Inc. $ 76,689 $ 70,748 $ 21,464 $ (92,212 ) $ 76,689 (11) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the Thirteen weeks ended September 30, 2017 Parent Guarantors Non- Eliminations Total Net sales $ 284,538 $ 113,243 $ 343,818 $ (60,820 ) $ 680,779 Cost of sales 216,039 88,757 272,959 (60,570 ) 517,185 Gross profit 68,499 24,486 70,859 (250 ) 163,594 Selling, general and administrative expenses 46,451 12,046 45,007 — 103,504 Operating income 22,048 12,440 25,852 (250 ) 60,090 Other income (expense): Interest expense (10,884 ) (3,989 ) (306 ) 3,989 (11,190 ) Interest income 268 9 5,023 (3,989 ) 1,311 Other 1,379 11 (1,040 ) — 350 (9,237 ) (3,969 ) 3,677 — (9,529 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 12,811 8,471 29,529 (250 ) 50,561 Income tax expense (benefit) 5,556 3,082 5,265 (8 ) 13,895 Earnings before equity in earnings of nonconsolidated subsidiaries 7,255 5,389 24,264 (242 ) 36,666 Equity in earnings of nonconsolidated subsidiaries 27,953 9,965 — (37,918 ) — Net earnings 35,208 15,354 24,264 (38,160 ) 36,666 Less: Earnings attributable to noncontrolling interests — — (1,458 ) — (1,458 ) Net earnings attributable to Valmont Industries, Inc. $ 35,208 $ 15,354 $ 22,806 $ (38,160 ) $ 35,208 (11) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the Thirty-nine weeks ended September 30, 2017 Parent Guarantors Non- Eliminations Total Net sales $ 893,988 $ 352,827 $ 967,130 $ (182,956 ) $ 2,030,989 Cost of sales 666,060 271,620 764,607 (182,777 ) 1,519,510 Gross profit 227,928 81,207 202,523 (179 ) 511,479 Selling, general and administrative expenses 143,590 35,555 129,138 — 308,283 Operating income 84,338 45,652 73,385 (179 ) 203,196 Other income (expense): Interest expense (32,672 ) (10,040 ) (640 ) 10,040 (33,312 ) Interest income 563 33 12,649 (10,040 ) 3,205 Other 3,900 42 (2,739 ) — 1,203 (28,209 ) (9,965 ) 9,270 — (28,904 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 56,129 35,687 82,655 (179 ) 174,292 Income tax expense (benefit) 21,552 13,184 15,626 (19 ) 50,343 Earnings before equity in earnings of nonconsolidated subsidiaries 34,577 22,503 67,029 (160 ) 123,949 Equity in earnings of nonconsolidated subsidiaries 85,274 15,281 — (100,555 ) — Net earnings 119,851 37,784 67,029 (100,715 ) 123,949 Less: Earnings attributable to noncontrolling interests — — (4,098 ) — (4,098 ) Net earnings attributable to Valmont Industries, Inc. $ 119,851 $ 37,784 $ 62,931 $ (100,715 ) $ 119,851 (11) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Thirteen weeks ended September 29, 2018 Parent Guarantors Non- Eliminations Total Net earnings $ 4,448 $ 14,792 $ 1,343 $ (13,592 ) $ 6,991 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gain (loss) — 4,289 (14,921 ) — (10,632 ) Realized loss on divestiture of grinding media business recorded in earnings — — — — — Gain (loss) on hedging activities (910 ) — — — (910 ) Equity in other comprehensive income (10,478 ) — — 10,478 — Other comprehensive income (loss) (11,388 ) 4,289 (14,921 ) 10,478 (11,542 ) Comprehensive income (loss) (6,940 ) 19,081 (13,578 ) (3,114 ) (4,551 ) Comprehensive income attributable to noncontrolling interests — — (2,389 ) — (2,389 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ (6,940 ) $ 19,081 $ (15,967 ) $ (3,114 ) $ (6,940 ) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Thirty-nine weeks ended September 29, 2018 Parent Guarantors Non- Eliminations Total Net earnings $ 76,689 $ 70,748 $ 26,926 $ (92,212 ) $ 82,151 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gain (loss) — 2,122 (52,903 ) — (50,781 ) Realized loss on divestiture of grinding media business recorded in earnings — — 9,203 — 9,203 Gain (loss) on hedging activities 834 — — — 834 Equity in other comprehensive income (44,366 ) — — 44,366 — Other comprehensive income (loss) (43,532 ) 2,122 (43,700 ) 44,366 (40,744 ) Comprehensive income (loss) 33,157 72,870 (16,774 ) (47,846 ) 41,407 Comprehensive income attributable to noncontrolling interests — — (8,250 ) — (8,250 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 33,157 $ 72,870 $ (25,024 ) $ (47,846 ) $ 33,157 (11) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Thirteen weeks ended September 30, 2017 Parent Guarantors Non- Eliminations Total Net earnings $ 35,208 $ 15,354 $ 24,264 $ (38,160 ) $ 36,666 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gain (loss) — (3,613 ) 23,143 — 19,530 Gain (loss) on hedging activities (721 ) — — — (721 ) Equity in other comprehensive income 18,418 — — (18,418 ) — Other comprehensive income (loss) 17,697 (3,613 ) 23,143 (18,418 ) 18,809 Comprehensive income (loss) 52,905 11,741 47,407 (56,578 ) 55,475 Comprehensive income attributable to noncontrolling interests — — (2,570 ) — (2,570 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 52,905 $ 11,741 $ 44,837 $ (56,578 ) $ 52,905 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Thirty-nine weeks ended September 30, 2017 Parent Guarantors Non- Eliminations Total Net earnings $ 119,851 $ 37,784 $ 67,029 $ (100,715 ) $ 123,949 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gain (loss) — 64,411 (3,940 ) — 60,471 Gain (loss) on hedging activities (1,760 ) — — — (1,760 ) Equity in other comprehensive income 60,017 — — (60,017 ) — Other comprehensive income (loss) 58,257 64,411 (3,940 ) (60,017 ) 58,711 Comprehensive income (loss) 178,108 102,195 63,089 (160,732 ) 182,660 Comprehensive income attributable to noncontrolling interests — — (4,552 ) — (4,552 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 178,108 $ 102,195 $ 58,537 $ (160,732 ) $ 178,108 (11) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED BALANCE SHEETS September 29, 2018 Parent Guarantors Non- Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 26,292 $ 10,628 $ 258,702 $ — $ 295,622 Receivables, net 154,551 72,521 273,334 — 500,406 Inventories 140,195 42,840 219,765 (2,895 ) 399,905 Contract asset - costs and profits in excess of billings 49,509 39,583 23,528 — 112,620 Prepaid expenses and other assets 11,586 4,433 24,636 — 40,655 Refundable income taxes 13,182 — — — 13,182 Total current assets 395,315 170,005 799,965 (2,895 ) 1,362,390 Property, plant and equipment, at cost 573,119 168,519 412,205 — 1,153,843 Less accumulated depreciation and amortization 386,282 90,810 169,030 — 646,122 Net property, plant and equipment 186,837 77,709 243,175 — 507,721 Goodwill 20,108 110,562 258,924 — 389,594 Other intangible assets 90 28,271 150,332 — 178,693 Investment in subsidiaries and intercompany accounts 1,345,874 1,123,215 933,195 (3,402,284 ) — Other assets 49,952 — 74,728 — 124,680 Total assets $ 1,998,176 $ 1,509,762 $ 2,460,319 $ (3,405,179 ) $ 2,563,078 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current installments of long-term debt $ — $ — $ 829 $ — $ 829 Notes payable to banks — — 3,328 — 3,328 Accounts payable 58,896 18,050 123,522 — 200,468 Accrued employee compensation and benefits 42,381 7,253 31,209 — 80,843 Accrued expenses 40,948 (1,987 ) 67,968 — 106,929 Dividends payable 8,310 — — — 8,310 Total current liabilities 150,535 23,316 226,856 — 400,707 Deferred income taxes 2,938 — 42,138 — 45,076 Long-term debt, excluding current installments 733,815 171,128 2,370 (171,128 ) 736,185 Defined benefit pension liability — — 179,877 — 179,877 Deferred compensation 43,460 — 4,714 — 48,174 Other noncurrent liabilities 10,211 392 8,708 — 19,311 Shareholders’ equity: Common stock of $1 par value 27,900 457,950 648,682 (1,106,632 ) 27,900 Additional paid-in capital — 162,906 1,107,536 (1,270,442 ) — Retained earnings 2,022,538 617,466 510,063 (1,127,529 ) 2,022,538 Accumulated other comprehensive income (loss) (322,554 ) 76,604 (347,156 ) 270,552 (322,554 ) Treasury stock (670,667 ) — — — (670,667 ) Total Valmont Industries, Inc. shareholders’ equity 1,057,217 1,314,926 1,919,125 (3,234,051 ) 1,057,217 Noncontrolling interest in consolidated subsidiaries — — 76,531 — 76,531 Total shareholders’ equity 1,057,217 1,314,926 1,995,656 (3,234,051 ) 1,133,748 Total liabilities and shareholders’ equity $ 1,998,176 $ 1,509,762 $ 2,460,319 $ (3,405,179 ) $ 2,563,078 (11) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED BALANCE SHEETS December 30, 2017 Parent Guarantors Non- Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 83,329 $ 5,304 $ 404,172 $ — $ 492,805 Receivables, net 149,221 82,995 271,461 — 503,677 Inventories 160,444 46,801 217,551 (3,848 ) 420,948 Contract asset - costs and profits in excess of billings — — 16,165 — 16,165 Prepaid expenses and other assets 8,607 970 17,901 — 27,478 Refundable income taxes 11,492 — — — 11,492 Total current assets 413,093 136,070 927,250 (3,848 ) 1,472,565 Property, plant and equipment, at cost 557,371 160,767 447,549 — 1,165,687 Less accumulated depreciation and amortization 368,668 84,508 193,583 — 646,759 Net property, plant and equipment 188,703 76,259 253,966 — 518,928 Goodwill 20,108 110,562 207,050 — 337,720 Other intangible assets 130 30,955 107,514 — 138,599 Investment in subsidiaries and intercompany accounts 1,416,446 1,181,537 927,179 (3,525,162 ) — Other assets 50,773 — 83,665 — 134,438 Total assets $ 2,089,253 $ 1,535,383 $ 2,506,624 $ (3,529,010 ) $ 2,602,250 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current installments of long-term debt $ — $ — $ 966 $ — $ 966 Notes payable to banks — — 161 — 161 Accounts payable 69,915 18,039 139,952 — 227,906 Accrued employee compensation and benefits 44,086 8,749 31,591 — 84,426 Accrued expenses 28,198 9,621 43,210 — 81,029 Dividends payable 8,510 — — — 8,510 Total current liabilities 150,709 36,409 215,880 — 402,998 Deferred income taxes 20,885 — 14,021 — 34,906 Long-term debt, excluding current installments 750,821 185,078 9,836 (191,847 ) 753,888 Defined benefit pension liability — — 189,552 — 189,552 Deferred compensation 42,928 — 5,598 — 48,526 Other noncurrent liabilities 11,074 6 9,505 — 20,585 Shareholders’ equity: Common stock of $1 par value 27,900 457,950 648,682 (1,106,632 ) 27,900 Additional paid-in capital — 159,414 1,107,536 (1,266,950 ) — Retained earnings 1,954,344 622,044 619,622 (1,241,666 ) 1,954,344 Accumulated other comprehensive income (279,022 ) 74,482 (352,567 ) 278,085 (279,022 ) Treasury stock (590,386 ) — — — (590,386 ) Total Valmont Industries, Inc. shareholders’ equity 1,112,836 1,313,890 2,023,273 (3,337,163 ) 1,112,836 Noncontrolling interest in consolidated subsidiaries — — 38,959 — 38,959 Total shareholders’ equity 1,112,836 1,313,890 2,062,232 (3,337,163 ) 1,151,795 Total liabilities and shareholders’ equity $ 2,089,253 $ 1,535,383 $ 2,506,624 $ (3,529,010 ) $ 2,602,250 (11) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Thirty-nine Weeks Ended September 29, 2018 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 76,689 $ 70,748 $ 26,926 $ (92,212 ) $ 82,151 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 19,498 10,564 31,956 — 62,018 Noncash gain on trading securities — — (62 ) — (62 ) Impairment of property, plant and equipment — — 4,197 — 4,197 Impairment of goodwill & intangible assets — — 15,780 — 15,780 Loss on divestiture of grinding media business 2,518 — 3,566 — 6,084 Stock-based compensation 8,076 — — — 8,076 Defined benefit pension plan expense — — (1,713 ) — (1,713 ) Contribution to defined benefit pension plan — — (1,555 ) — (1,555 ) Loss (gain) on sale of property, plant and equipment 7 (27 ) (333 ) — (353 ) Equity in earnings in nonconsolidated subsidiaries (55,487 ) (37,939 ) — 93,426 — Deferred income taxes 729 1,791 (1,706 ) — 814 Changes in assets and liabilities: Net working capital (28,948 ) (40,255 ) (26,432 ) (1,277 ) (96,912 ) Other noncurrent liabilities (762 ) 387 (874 ) — (1,249 ) Income taxes payable (refundable) (23,256 ) (1,066 ) 15,099 — (9,223 ) Net cash flows from operating activities (936 ) 4,203 64,849 (63 ) 68,053 Cash flows from investing activities: Purchase of property, plant and equipment (16,940 ) (9,546 ) (22,433 ) — (48,919 ) Proceeds from sale of assets 39 232 64,515 — 64,786 Acquisitions, net of cash acquired (57,805 ) — (67,504 ) — (125,309 ) Settlement of net investment hedge (1,621 ) — — — (1,621 ) Other, net 28,299 (3,683 ) (27,050 ) 63 (2,371 ) Net cash flows from investing activities (48,028 ) (12,997 ) (52,472 ) 63 (113,434 ) Cash flows from financing activities: Proceeds from short-term agreements — — 3,217 — 3,217 Proceeds from long-term borrowings 236,936 — — — 236,936 Principal payments on long-term borrowings (252,219 ) — (733 ) — (252,952 ) Settlement of financial derivative (2,467 ) — — — (2,467 ) Debt issuance costs (2,322 ) — — — (2,322 ) Dividends paid (25,415 ) — — — (25,415 ) Dividends to noncontrolling interest — — (5,737 ) — (5,737 ) Intercompany dividends 123,363 11,296 (134,659 ) — — Purchase of noncontrolling interest — — (5,510 ) — (5,510 ) Intercompany capital contribution (3,492 ) 3,492 — — — Purchase of treasury shares (86,919 ) — — — (86,919 ) Proceeds from exercises under stock plans 6,376 — — — 6,376 Purchase of common treasury shares - stock plan exercises (1,914 ) — — — (1,914 ) Net cash flows from financing activities (8,073 ) 14,788 (143,422 ) — (136,707 ) Effect of exchange rate changes on cash and cash equivalents — (670 ) (14,425 ) — (15,095 ) Net change in cash and cash equivalents (57,037 ) 5,324 (145,470 ) — (197,183 ) Cash and cash equivalents—beginning of year 83,329 5,304 404,172 — 492,805 Cash and cash equivalents—end of period $ 26,292 $ 10,628 $ 258,702 $ — $ 295,622 (11) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Thirty-nine Weeks Ended September 30, 2017 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 119,851 $ 37,784 $ 67,029 $ (100,715 ) $ 123,949 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 19,600 11,130 32,770 — 63,500 Noncash loss on trading securities — — 395 — 395 Stock-based compensation 7,300 — — — 7,300 Defined benefit pension plan expense — — 481 — 481 Contribution to defined benefit pension plan — — (26,064 ) — (26,064 ) Loss (gain) on sale of property, plant and equipment (725 ) 59 (66 ) — (732 ) Equity in earnings in nonconsolidated subsidiaries (85,274 ) (15,281 ) — 100,555 — Deferred income taxes 2,065 — (1,986 ) — 79 Changes in assets and liabilities: Net working capital (5,713 ) (23,364 ) (14,815 ) 179 (43,713 ) Other noncurrent liabilities (381 ) — (1,246 ) — (1,627 ) Income taxes payable (refundable) (11,403 ) 802 8,869 — (1,732 ) Net cash flows from operating activities 45,320 11,130 65,367 19 121,836 Cash flows from investing activities: Purchase of property, plant and equipment (14,046 ) (5,952 ) (19,900 ) — (39,898 ) Proceeds from sale of assets 745 (48 ) 878 — 1,575 Acquisitions, net of cash acquired — — (5,362 ) — (5,362 ) Settlement of net investment hedge 5,123 — — — 5,123 Other, net 15,714 (8,985 ) (10,172 ) (19 ) (3,462 ) Net cash flows from investing activities 7,536 (14,985 ) (34,556 ) (19 ) (42,024 ) Cash flows from financing activities: Payments under short-term agreements — — (549 ) — (549 ) Principal payments on long-term borrowings — — (658 ) — (658 ) Dividends paid (25,386 ) — — — (25,386 ) Dividends to noncontrolling interest — — (3,895 ) — (3,895 ) Intercompany dividends 22,662 — (22,662 ) — — Intercompany interest on long-term note — (5,669 ) 5,669 — — Intercompany capital contribution (7,375 ) 7,375 — — — Proceeds from exercises under stock plans 12,446 — — — 12,446 Purchase of common treasury shares - stock plan exercises (3,929 ) — — — (3,929 ) Net cash flows from financing activities (1,582 ) 1,706 (22,095 ) — (21,971 ) Effect of exchange rate changes on cash and cash equivalents — 245 22,888 — 23,133 Net change in cash and cash equivalents 51,274 (1,904 ) 31,604 — 80,974 Cash and cash equivalents—beginning of year 67,225 6,071 339,220 — 412,516 Cash and cash equivalents—end of period $ 118,499 $ 4,167 $ 370,824 $ — $ 493,490 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 29, 2018 | |
Accounting Policies [Abstract] | |
Condensed Consolidated Financial Statements | Condensed Consolidated Financial Statements The Condensed Consolidated Balance Sheet as of September 29, 2018 , the Condensed Consolidated Statements of Earnings and Comprehensive Income for the thirteen and thirty-nine weeks ended September 29, 2018 and September 30, 2017 , and the Condensed Consolidated Statements of Cash Flows and Shareholders' Equity for the thirty-nine week periods then ended have been prepared by the Company, without audit. In the opinion of management, all necessary adjustments (which include normal recurring adjustments) have been made to present fairly the financial statements as of September 29, 2018 and for all periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These Condensed Consolidated Financial Statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 30, 2017 . The accounting policies and methods of computation followed in these interim financial statements are the same as those followed in the financial statements for the year ended December 30, 2017 with the exception of the revenue recognition accounting policy which changed from adopting ASU 2014-09 and is discussed later within this footnote. The results of operations for the period ended September 29, 2018 are not necessarily indicative of the operating results for the full year. |
Inventories | Inventories Approximately 35% and 37% of inventory is valued at the lower of cost, determined on the last-in, first-out (LIFO) method, or market as of September 29, 2018 and December 30, 2017 . All other inventory is valued at the lower of cost, determined on the first-in, first-out (FIFO) method or market. Finished goods and manufactured goods inventories include the costs of acquired raw materials and related factory labor and overhead charges required to convert raw materials to manufactured and finished goods. |
Income Taxes | Income Taxes Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries for the thirteen and thirty-nine weeks ended September 29, 2018 and September 30, 2017 , were as follows: Thirteen Weeks Ended Thirty-nine Weeks Ended 2018 2017 2018 2017 United States $ 15,596 $ 28,886 $ 99,697 $ 115,082 Foreign 486 21,675 18,482 59,210 $ 16,082 $ 50,561 $ 118,179 $ 174,292 |
Pension Benefits | Pension Benefits The Company incurs expenses in connection with the Delta Pension Plan ("DPP"). The DPP was acquired as part of the Delta plc acquisition in fiscal 2010 and has no members that are active employees. In order to measure expense and the related benefit obligation, various assumptions are made including discount rates used to value the obligation, expected return on plan assets used to fund these expenses and estimated future inflation rates. These assumptions are based on historical experience as well as current facts and circumstances. An actuarial analysis is used to measure the expense and liability associated with pension benefits. |
Stock Plans | Stock Plans The Company maintains stock‑based compensation plans approved by the shareholders, which provide that the Human Resource Committee of the Board of Directors may grant incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, and bonuses of common stock. At September 29, 2018 , 1,683,908 shares of common stock remained available for issuance under the plans. Under the plans, the exercise price of each option equals the closing market price at the date of the grant. Options vest beginning on the first anniversary of the grant in equal amounts over three to six years or on the grant's fifth anniversary. Expiration of grants is from seven to ten years from the date of grant. Restricted stock units and awards generally vest in equal installments over three years beginning on the first anniversary of the grant. |
Fair Value | Fair Value The Company applies the provisions of Accounting Standards Codification 820, Fair Value Measurements (“ASC 820”) which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The provisions of ASC 820 apply to other accounting pronouncements that require or permit fair value measurements. As defined in ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three‑level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Comprehensive Income | Comprehensive Income Comprehensive income includes net earnings, currency translation adjustments, certain derivative-related activity and changes in net actuarial gains/losses from a pension plan. Results of operations for foreign subsidiaries are translated using the average exchange rates during the period. Assets and liabilities are translated at the exchange rates in effect on the balance sheet dates. |
Subsequent Events | |
Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-9, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification ("ASC") 605, Revenue Recognition . Effective December 31, 2017, the Company adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). The Company elected the modified retrospective approach for the adoption of the new revenue standard, resulting in a credit to retained earnings being recognized for $9,771 . The Company calculated the cumulative effect on revenue of approximately $51,507 with $13,121 of pre-tax operating income; these were customer orders for the steel utility, concrete utility, and wireless communication structures product lines at various stages of production at December 30, 2017. (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) In March 2017, the FASB issued ASU 2017-07, Presentation of Net Periodic Benefit Cost Related to Defined Benefit Plans, which amends the income statement presentation requirements for the components of net periodic benefit cost for an entity's defined benefit pension and post-retirement plans. The Company adopted this ASU in the first quarter of 2018, recognizing the DPP net periodic pension expense within Other income (expense). The Company also reclassified $167 and $481 of DPP net periodic pension expense for third quarter and first three quarters of 2017 out of selling, general, and administrative expense and into Other expense. In December 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires amounts generally described as restricted cash and restricted cash equivalents to be included within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. The Company adopted the ASU in the first quarter of 2018, recasting the beginning-of-period and end-of-period total cash and cash equivalent amounts on the statement of cash flows to include the £10,000 restricted cash account for the pension plan at December 31, 2016, thus reducing cash flows from operating activities by $12,568 in 2017. The Company did not have any restricted cash at September 29, 2018 or December 30, 2017. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Accounting Policies [Abstract] | |
Components of inventories | Inventories consisted of the following: September 29, December 30, Raw materials and purchased parts $ 202,517 $ 183,029 Work-in-process 24,046 30,671 Finished goods and manufactured goods 222,581 250,975 Subtotal 449,144 464,675 Less: LIFO reserve 49,239 43,727 $ 399,905 $ 420,948 |
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries for the thirteen and thirty-nine weeks ended September 29, 2018 and September 30, 2017 , were as follows: Thirteen Weeks Ended Thirty-nine Weeks Ended 2018 2017 2018 2017 United States $ 15,596 $ 28,886 $ 99,697 $ 115,082 Foreign 486 21,675 18,482 59,210 $ 16,082 $ 50,561 $ 118,179 $ 174,292 |
Schedule of components of the net periodic pension (benefit) expense | The components of the net periodic pension (benefit) expense for the thirteen and thirty-nine weeks ended September 29, 2018 and September 30, 2017 were as follows: Thirteen Weeks Ended Thirty-nine Weeks Ended Net periodic (benefit) expense: 2018 2017 2018 2017 Interest cost $ 4,400 $ 4,676 $ 13,602 $ 13,475 Expected return on plan assets (5,704 ) (5,277 ) (17,633 ) (15,208 ) Amortization of actuarial loss 750 768 2,318 2,214 Net periodic expense (benefit) $ (554 ) $ 167 $ (1,713 ) $ 481 |
Compensation expense (included in selling, general and administrative expenses) and associated income tax benefits related to stock options | The Company's compensation expense (included in selling, general and administrative expenses) and associated income tax benefits related to stock options and restricted stock for the thirteen and thirty-nine weeks ended September 29, 2018 and September 30, 2017 , respectively, were as follows: Thirteen Weeks Ended Thirty-nine Weeks Ended 2018 2017 2018 2017 Compensation expense $ 2,702 $ 2,710 $ 8,076 $ 7,300 Income tax benefits 676 1,043 2,019 2,811 |
Valuation methodologies used for assets and liabilities measured at fair value | Fair Value Measurement Using: Carrying Value Quoted Prices in Significant Other Significant Assets: Trading Securities $ 41,475 $ 41,475 $ — $ — Fair Value Measurement Using: Carrying Value Quoted Prices in Significant Other Significant Assets: Trading Securities $ 41,042 $ 41,042 $ — $ — |
Components of accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) consisted of the following at September 29, 2018 and December 30, 2017: Foreign Currency Translation Adjustments Gain/(Loss) on Hedging Activities Defined Benefit Pension Plan Accumulated Other Comprehensive Loss Balance at December 30, 2017 $ (171,399 ) $ 6,357 $ (113,980 ) $ (279,022 ) Current-period comprehensive income (loss) (53,569 ) (381 ) — (53,950 ) Divestiture of grinding media business 9,203 1,215 — 10,418 Balance at September 29, 2018 $ (215,765 ) $ 7,191 $ (113,980 ) $ (322,554 ) |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The cumulative effect of initially applying the new revenue standard was recorded as an adjustment to the opening balance of retained earnings, which impacted the Condensed Consolidated Balance Sheet as follows: Balance Sheet December 30, ASC 606 Adjustments December 31, Assets Inventories $ 420,948 $ (36,243 ) $ 384,705 Contract asset - costs & profits in excess of billings 16,165 51,507 67,672 Liabilities and shareholders' equity Accrued expenses 81,029 2,043 83,072 Deferred income taxes 34,906 3,450 38,356 Retained earnings 1,954,344 9,771 1,964,115 The adoption of ASC 606 had the following impact on the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Earnings for the thirteen and thirty-nine weeks ended September 29, 2018 : Balance Sheet As Reported Balance Excluding ASC 606 Effects Change Assets Inventories $ 399,905 $ 463,184 $ (63,279 ) Contract asset - costs & profits in excess of billings 112,620 26,369 86,251 Liabilities and shareholders' equity Accrued expenses 106,929 101,878 5,051 Deferred income taxes 45,076 40,451 4,625 Retained earnings 2,022,538 2,009,242 13,296 Thirteen Weeks Ended September 29, 2018 Thirty-nine Weeks Ended September 29, 2018 Statement of Earnings As Reported Balance Excluding ASC 606 Effects Change As Reported Balance Excluding ASC 606 Effects Change Net Sales 678,692 $ 666,095 $ 12,597 2,059,781 $ 2,024,921 $ 34,860 Operating Income 38,360 $ 35,697 $ 2,663 165,990 $ 161,289 $ 4,701 |
Disaggregation of Revenue | evenue by product line is disclosed in the Segment footnote. A breakdown by segment of revenue recognized over time and revenue recognized at a point in time for the thirteen and thirty-nine weeks ended September 29, 2018 is as follows: Point in Time Over Time Point in Time Over Time Thirteen weeks ended September 29, 2018 Thirteen weeks ended September 29, 2018 Thirty-nine weeks ended September 29, 2018 Thirty-nine weeks ended September 29, 2018 Utility Support Structures $ 6,090 $ 211,853 $ 6,090 $ 618,243 Engineered Support Structures 235,948 12,483 680,863 29,525 Coatings 74,547 — 217,544 — Irrigation 134,710 3,061 475,744 8,692 Other — — 23,080 — Total $ 451,295 $ 227,397 $ 1,403,321 $ 656,460 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Business Combinations [Abstract] | |
Schedule Preliminary Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed of Convert as of the date of acquisition: 2) ACQUISITIONS (Continued) At August 3, 2018 Current assets $ 18,349 Other assets 3,166 Patent and Proprietary Technology 16,554 Trade name 8,701 Goodwill 41,432 Total fair value of assets acquired $ 88,202 Current liabilities 5,376 Contingent consideration liability 18,760 Deferred taxes 6,061 Total fair value of liabilities assumed $ 30,197 Non-controlling interests 14,501 Net assets acquired $ 43,504 The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed of Walpar as of the date of acquisition: At August 3, 2018 Current assets $ 14,729 Customer relationships 32,000 Trade name 4,300 Goodwill 40,919 Total fair value of assets acquired $ 91,948 Current liabilities 2,185 Deferred taxes 9,090 Total fair value of liabilities assumed $ 11,275 Non-controlling interests 22,868 Net assets acquired $ 57,805 |
Schedule of Pro Forma | The proforma effect of these acquisitions on the third quarter and first three quarters of 2018 and 2017 is as follows: Thirteen weeks ended September 29, 2018 Thirteen weeks ended September 30, 2017 Thirty-nine weeks ended September 29, 2018 Thirty-nine weeks ended September 30, 2017 Net sales $ 683,608 $ 694,713 $ 2,094,092 $ 2,078,680 Net earnings 4,860 36,482 78,950 123,986 Earnings per share-diluted 0.22 1.60 3.50 5.46 |
DIVESTITURE (Tables)
DIVESTITURE (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Pre-tax gain from divestiture, before recognition of currency translation loss $ 4,334 Recognition of cumulative currency translation loss and hedges (out of OCI) (10,418 ) Net pre-tax loss from divestiture of the grinding media business $ (6,084 ) The assets and liabilities of the grinding media business at closing on April 30, 2018 were as follows: Receivables, net $ 9,848 Inventories 15,945 Net property, plant, and equipment 13,815 Goodwill and intangible assets 27,153 Other assets 1,388 Total assets $ 68,149 Accounts payable $ 7,125 Accrued expenses 2,484 Deferred income taxes 2,187 Total liabilities $ 11,796 Net assets $ 56,353 |
RESTRUCTURING ACTIVITIES (Table
RESTRUCTURING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following pre-tax expense were recognized during the third quarter of 2018: ESS Utility Corporate Total Severance $ 1,706 $ — $ — $ 1,706 Other cash restructuring expenses 326 497 — 823 Asset impairments/net loss on disposals 1,406 — — 1,406 Total cost of sales 3,438 497 — 3,935 Severance 1,757 — — 1,757 Other cash restructuring expenses 551 — — 551 Asset impairments/net loss on disposals — — — — Total selling, general and administrative expenses 2,308 — — 2,308 Consolidated total $ 5,746 $ 497 $ — $ 6,243 In the first nine-months of 2018, the Company recognized the following pre-tax restructuring expenses: ESS Utility Corporate Total Severance $ 3,732 $ 515 $ — $ 4,247 Other cash restructuring expenses 478 2,228 — 2,706 Asset impairments/net loss on disposals 3,812 — — 3,812 Total cost of sales 8,022 2,743 — 10,765 Severance 5,268 — — 5,268 Other cash restructuring expenses 1,118 — 126 1,244 Asset impairments/net loss on disposals 385 — — 385 Total selling, general and administrative expenses 6,771 — 126 6,897 Consolidated total $ 14,793 $ 2,743 $ 126 $ 17,662 |
Schedule of liabilities recorded for the restructuring plan and changes | Liabilities recorded for the restructuring plans and changes therein for the first nine-months of 2018 were as follows: Balance at December 30, 2017 Recognized Restructuring Expense Costs Paid or Otherwise Settled Balance at September 29, 2018 Severance $ — $ 9,515 $ (9,095 ) $ 420 Other cash restructuring expenses 1,216 3,950 (3,983 ) 1,183 Total $ 1,216 $ 13,465 $ (13,078 ) $ 1,603 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of components of amortized intangible assets | he components of amortized intangible assets at September 29, 2018 and December 30, 2017 were as follows: September 29, 2018 Gross Accumulated Weighted Customer Relationships $ 218,492 $ 130,082 13 years Patents & Proprietary Technology 23,846 4,440 14 years Other 7,991 6,868 5 years $ 250,329 $ 141,390 December 30, 2017 Gross Accumulated Weighted Customer Relationships $ 200,810 $ 131,062 13 years Patents & Proprietary Technology 6,693 3,999 11 years Other 8,532 7,228 5 years $ 216,035 $ 142,289 |
Schedule of amortization expense for intangible assets | Amortization expense for intangible assets for the thirteen and thirty-nine weeks ended September 29, 2018 and September 30, 2017 , respectively was as follows: Thirteen Weeks Ended Thirty-nine Weeks Ended 2018 2017 2018 2017 3,721 4,025 11,176 11,792 |
Schedule of future estimated amortization expense | Estimated annual amortization expense related to finite‑lived intangible assets is as follows: Estimated 2018 $ 15,264 2019 16,081 2020 14,969 2021 12,885 2022 10,740 |
Schedule of non-amortized intangible assets | The carrying values of trade names at September 29, 2018 and December 30, 2017 were as follows: September 29, December 30, Year Acquired Newmark $ 11,111 $ 11,111 2004 Valmont SM 8,283 9,973 2014 Webforge 9,105 9,432 2010 Convert Italia S.p.A 8,703 — 2018 Ingal EPS/Ingal Civil Products 7,424 7,690 2010 Shakespeare 4,000 4,000 2014 Other 21,128 22,647 $ 69,754 $ 64,853 |
Schedule of carrying amount of goodwill | The carrying amount of goodwill by segment as of September 29, 2018 and December 30, 2017 was as follows: Engineered Utility Coatings Irrigation Other Total Gross balance at December 30, 2017 $ 170,076 $ 90,248 $ 76,696 $ 19,778 $ 15,814 $ 372,612 Accumulated impairment losses (18,670 ) — (16,222 ) — — (34,892 ) Balance at December 30, 2017 151,406 90,248 60,474 19,778 15,814 337,720 Acquisitions 40,919 41,432 — 5,503 — 87,854 Asset impairment — (14,355 ) — — — (14,355 ) Divestiture of grinding media — — — — (15,814 ) (15,814 ) Foreign currency translation (4,797 ) (489 ) (380 ) (145 ) — (5,811 ) Balance at September 29, 2018 $ 187,528 $ 116,836 $ 60,094 $ 25,136 $ — $ 389,594 |
CASH FLOW SUPPLEMENTARY INFOR_2
CASH FLOW SUPPLEMENTARY INFORMATION (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash payments for interest and income taxes (net of refunds) | Cash payments for interest and income taxes (net of refunds) for the thirty-nine weeks ended September 29, 2018 and September 30, 2017 were as follows: 2018 2017 Interest $ 23,624 $ 22,732 Income taxes 36,855 52,823 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic and diluted earnings per share (EPS) | The following table provides a reconciliation between Basic and Diluted earnings per share (EPS): Basic EPS Dilutive Diluted EPS Thirteen weeks ended September 29, 2018: Net earnings attributable to Valmont Industries, Inc. $ 4,448 $ — $ 4,448 Shares outstanding (000 omitted) 22,215 137 22,352 Per share amount $ 0.20 $ — $ 0.20 Thirteen weeks ended September 30, 2017: Net earnings attributable to Valmont Industries, Inc. $ 35,208 $ — $ 35,208 Shares outstanding (000 omitted) 22,527 224 22,751 Per share amount $ 1.56 $ (0.01 ) $ 1.55 Thirty-nine weeks ended September 29, 2018: Net earnings attributable to Valmont Industries, Inc. $ 76,689 $ — $ 76,689 Shares outstanding (000 omitted) 22,421 153 22,574 Per share amount $ 3.42 $ (0.02 ) $ 3.40 Thirty-nine weeks ended September 30, 2017: Net earnings attributable to Valmont Industries, Inc. $ 119,851 $ — $ 119,851 Shares outstanding (000 omitted) 22,505 212 22,717 Per share amount $ 5.33 $ (0.05 ) $ 5.28 |
HEDGING ACTIVITIES (Tables)
HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of derivative instruments | Fair value of derivative instruments at September 29, 2018 and December 30, 2017 are as follows: Derivatives designated as hedging instruments: Balance sheet location September 29, 2018 December 30, 2017 Commodity forward contracts Prepaid expenses and other assets $ 854 $ — Foreign currency forward contracts Prepaid expenses and other assets 4,534 — Foreign currency forward contracts Accrued expenses — (826 ) Cross currency swap contracts Prepaid expenses and other assets 206 — Cross currency swap contracts Accrued expenses (2,715 ) — $ 2,879 $ (826 ) |
Gains (losses) on derivatives recognized on statements of earnings | Gains (losses) on derivatives recognized in the condensed consolidated statements of earnings for the thirteen and thirty-nine weeks ended September 29, 2018 and September 30, 2017 are as follows: Thirteen weeks ended Thirty-nine weeks ended Derivatives designated as hedging instruments: Statements of earnings location September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Commodity forward contracts Product cost of sales $ 717 $ — $ 717 $ — Foreign currency forward contracts Other income (expense) 230 — 230 — Interest rate hedges Interest expense (395 ) (19 ) (439 ) (56 ) Cross currency swap contracts Interest expense 206 — 206 — $ 758 $ (19 ) $ 714 $ (56 ) |
Schedule of notional amounts of outstanding derivative | Key terms of the three CCS are as follows: Currency Notional Amount Termination Date Swapped Interest Rate Set Settlement Amount Danish Kroner, DKK $ 60,000 October 1, 2023 2.52% DKK 386,118 Euro $ 25,000 October 1, 2020 2.14% €21,580 Euro $ 10,000 October 1, 2021 2.29% €8,631 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt | Long-term debt is as follows: September 29, December 30, 5.00% senior unsecured notes due 2044(a) $ 450,000 $ 250,000 5.25% senior unsecured notes due 2054(b) 305,000 250,000 Unamortized discount on 5.00% and 5.25% senior unsecured notes (a)(b) (21,547 ) (4,312 ) 6.625% senior unsecured notes due 2020(c) — 250,200 Unamortized premium on 6.625 senior unsecured notes (c) — 2,545 Revolving credit agreement (d) — — IDR Bonds(e) 8,500 8,500 Other notes 3,199 4,033 Debt issuance costs (8,138 ) (6,112 ) Long-term debt 737,014 754,854 Less current installments of long-term debt 829 966 Long-term debt, excluding current installments $ 736,185 $ 753,888 (a) The 5.00% senior unsecured notes due 2044 include an aggregate principal amount of $450,000 on which interest is paid and an unamortized discount balance of $13,992 at September 29, 2018. The notes bear interest at 5.000% per annum and are due on October 1, 2044. The discount is amortized and recognized as interest expense as interest payments are made over the term of the notes. The notes may be repurchased prior to maturity in whole, or in part, at any time at 100% of their principal amount plus a make-whole premium and accrued and unpaid interest. These notes are guaranteed by certain subsidiaries of the Company. (9) LONG-TERM DEBT (Continued) (b) The 5.25% senior unsecured notes due 2054 include an aggregate principal amount of $305,000 on which interest is paid and an unamortized discount balance of $7,555 at September 29, 2018. The notes bear interest at 5.250% per annum and are due on October 1, 2054. The discount is amortized and recognized as interest expense as interest payments are made over the term of the notes. The notes may be repurchased prior to maturity in whole, or in part, at any time at 100% of their principal amount plus a make-whole premium and accrued and unpaid interest. These notes are guaranteed by certain subsidiaries of the Company. (c) On June 11, 2018, the Company notified the holders of the 2020 bonds of its plan to redeem all of these bonds. On July 9, 2018, the Company redeemed all $250,200 of the 2020 bonds at a make-whole redemption price equal to approximately $266,000 plus approximately $3,600 of accrued and unpaid interest on the notes from April 20, 2018 to July 8, 2018. The Company recognized $14,820 of redemption related expenses, including the recognition of the unamortized premium, in the third quarter of 2018. (d) On October 18, 2017, the Company amended and restated its revolving credit facility with JP Morgan Chase Bank, N.A., as Administrative Agent, and the other lenders party thereto. The credit facility provides for $600,000 of committed unsecured revolving credit loans. The Company may increase the credit facility by up to an additional $200,000 at any time, subject to lenders increasing the amount of their commitments. This amendment extends the maturity date of the credit facility from October 17, 2019 to October 18, 2022 and increases the available borrowings in foreign currencies from $200 million to $400 million . The interest rate on the borrowings will be, at the Company's option, either: (i) LIBOR (based on a 1, 2, 3 or 6 month interest period, as selected by the Company) plus 100 to 162.5 basis points, depending on the credit rating of the Company's senior debt published by Standard & Poor's Rating Services and Moody's Investors Service, Inc., or; (ii) the higher of • the prime lending rate, • the Federal Funds rate plus 50 basis points, and • LIBOR (based on a 1 month interest period) plus 100 basis points, plus, in each case, 0 to 62.5 basis points, depending on the credit rating of the Company's senior debt published by Standard & Poor's Rating Services and Mood's Investors Service, Inc. At September 29, 2018, the Company had no outstanding borrowings under the revolving credit facility. The revolving credit facility has a maturity date of October 18, 2022 and contains certain financial covenants that may limit additional borrowing capability under the agreement. At September 29, 2018, the Company had the ability to borrow $585,350 under this facility, after consideration of standby letters of credit of $14,650 associated with certain insurance obligations. We also maintain certain short-term bank lines of credit totaling $123,613 , $120,312 of which was unused at September 29, 2018. (e) The Industrial Development Revenue Bonds were issued to finance the construction of a manufacturing facility in Jasper, Tennessee. Variable interest is payable until final maturity on June 1, 2025. The effective interest rates at September 29, 2018 and December 30, 2017 were 2.96% an |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Segment Reporting [Abstract] | |
Segment reporting information of sales and operating income | (10) BUSINESS SEGMENTS (Continued) Summary by Business Thirteen Weeks Ended Thirty-nine Weeks Ended September 29, September 30, September 29, September 30, SALES: Engineered Support Structures segment: Lighting, Traffic, and Highway Safety Products $ 183,184 $ 165,031 $ 522,558 $ 467,307 Communication Products 35,985 46,324 109,690 121,613 Access Systems 32,355 34,909 94,941 99,096 Engineered Support Structures segment 251,524 246,264 727,189 688,016 Utility Support Structures segment: Steel 161,847 160,952 471,947 472,385 Concrete 27,715 18,811 81,562 67,921 Engineered Solar Tracker Solutions 6,090 — 6,090 — Offshore and Other Complex Steel Structures 22,617 25,046 66,251 75,372 Utility Support Structures segment 218,269 204,809 625,850 615,678 Coatings segment 90,433 82,593 266,952 235,842 Irrigation segment 140,175 147,428 491,064 502,939 Other — 19,800 23,080 60,466 Total 700,401 700,894 2,134,135 2,102,941 INTERSEGMENT SALES: Engineered Support Structures segment 3,093 1,589 16,801 18,987 Utility Support Structures segment 326 1,235 1,517 2,452 Coatings segment 15,886 14,913 49,408 44,230 Irrigation segment 2,404 2,378 6,628 6,283 Other — — — — Total 21,709 20,115 74,354 71,952 NET SALES: Engineered Support Structures segment 248,431 244,675 710,388 669,029 Utility Support Structures segment 217,943 203,574 624,333 613,226 Coatings segment 74,547 67,680 217,544 191,612 Irrigation segment 137,771 145,050 484,436 496,656 Other — 19,800 23,080 60,466 Total $ 678,692 $ 680,779 $ 2,059,781 $ 2,030,989 OPERATING INCOME: Engineered Support Structures segment $ 16,499 $ 16,986 $ 36,411 $ 46,738 Utility Support Structures segment 2,090 22,845 46,298 69,446 Coatings segment 14,373 14,577 41,108 36,091 Irrigation segment 21,302 18,235 82,917 83,196 Other — (217 ) (913 ) 3,728 Adjustment to LIFO inventory valuation method (2,780 ) (1,626 ) (5,512 ) (2,839 ) Corporate (13,124 ) (10,710 ) (34,319 ) (33,164 ) Total $ 38,360 $ 60,090 $ 165,990 $ 203,196 |
GUARANTOR_NON-GUARANTOR FINAN_2
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | |
Condensed Consolidated Statements of Earnings | CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the Thirteen weeks ended September 29, 2018 Parent Guarantors Non- Eliminations Total Net sales $ 293,070 $ 132,059 $ 319,129 $ (65,566 ) $ 678,692 Cost of sales 227,467 100,130 252,353 (65,598 ) 514,352 Gross profit 65,603 31,929 66,776 32 164,340 Selling, general and administrative expenses 51,159 12,908 61,913 — 125,980 Operating income 14,444 19,021 4,863 32 38,360 Other income (expense): Interest expense (10,511 ) (3,600 ) (443 ) 3,600 (10,954 ) Interest income 174 47 4,379 (3,600 ) 1,000 Other (13,765 ) 15 1,426 — (12,324 ) (24,102 ) (3,538 ) 5,362 — (22,278 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries (9,658 ) 15,483 10,225 32 16,082 Income tax expense (benefit) (4,497 ) 4,732 8,882 (26 ) 9,091 Earnings before equity in earnings of nonconsolidated subsidiaries (5,161 ) 10,751 1,343 58 6,991 Equity in earnings of nonconsolidated subsidiaries 9,609 4,041 — (13,650 ) — Net earnings 4,448 14,792 1,343 (13,592 ) 6,991 Less: Earnings attributable to noncontrolling interests — — (2,543 ) — (2,543 ) Net earnings attributable to Valmont Industries, Inc. $ 4,448 $ 14,792 $ (1,200 ) $ (13,592 ) $ 4,448 (11) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the Thirty-nine weeks ended September 29, 2018 Parent Guarantors Non- Eliminations Total Net sales $ 906,978 $ 386,793 $ 966,764 $ (200,754 ) $ 2,059,781 Cost of sales 683,740 293,238 776,254 (202,030 ) 1,551,202 Gross profit 223,238 93,555 190,510 1,276 508,579 Selling, general and administrative expenses 147,949 37,360 157,280 — 342,589 Operating income 75,289 56,195 33,230 1,276 165,990 Other income (expense): Interest expense (32,788 ) (11,229 ) (1,031 ) 11,229 (33,819 ) Interest income 655 62 14,225 (11,229 ) 3,713 Other (15,773 ) 41 (1,973 ) — (17,705 ) (47,906 ) (11,126 ) 11,221 — (47,811 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 27,383 45,069 44,451 1,276 118,179 Income tax expense (benefit) 6,181 12,260 17,525 62 36,028 Earnings before equity in earnings of nonconsolidated subsidiaries 21,202 32,809 26,926 1,214 82,151 Equity in earnings of nonconsolidated subsidiaries 55,487 37,939 — (93,426 ) — Net earnings 76,689 70,748 26,926 (92,212 ) 82,151 Less: Earnings attributable to noncontrolling interests — — (5,462 ) — (5,462 ) Net earnings attributable to Valmont Industries, Inc. $ 76,689 $ 70,748 $ 21,464 $ (92,212 ) $ 76,689 |
Condensed Consolidated Statements of Comprehensive Income | CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Thirteen weeks ended September 29, 2018 Parent Guarantors Non- Eliminations Total Net earnings $ 4,448 $ 14,792 $ 1,343 $ (13,592 ) $ 6,991 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gain (loss) — 4,289 (14,921 ) — (10,632 ) Realized loss on divestiture of grinding media business recorded in earnings — — — — — Gain (loss) on hedging activities (910 ) — — — (910 ) Equity in other comprehensive income (10,478 ) — — 10,478 — Other comprehensive income (loss) (11,388 ) 4,289 (14,921 ) 10,478 (11,542 ) Comprehensive income (loss) (6,940 ) 19,081 (13,578 ) (3,114 ) (4,551 ) Comprehensive income attributable to noncontrolling interests — — (2,389 ) — (2,389 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ (6,940 ) $ 19,081 $ (15,967 ) $ (3,114 ) $ (6,940 ) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Thirty-nine weeks ended September 29, 2018 Parent Guarantors Non- Eliminations Total Net earnings $ 76,689 $ 70,748 $ 26,926 $ (92,212 ) $ 82,151 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gain (loss) — 2,122 (52,903 ) — (50,781 ) Realized loss on divestiture of grinding media business recorded in earnings — — 9,203 — 9,203 Gain (loss) on hedging activities 834 — — — 834 Equity in other comprehensive income (44,366 ) — — 44,366 — Other comprehensive income (loss) (43,532 ) 2,122 (43,700 ) 44,366 (40,744 ) Comprehensive income (loss) 33,157 72,870 (16,774 ) (47,846 ) 41,407 Comprehensive income attributable to noncontrolling interests — — (8,250 ) — (8,250 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 33,157 $ 72,870 $ (25,024 ) $ (47,846 ) $ 33,157 (11) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Thirteen weeks ended September 30, 2017 Parent Guarantors Non- Eliminations Total Net earnings $ 35,208 $ 15,354 $ 24,264 $ (38,160 ) $ 36,666 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gain (loss) — (3,613 ) 23,143 — 19,530 Gain (loss) on hedging activities (721 ) — — — (721 ) Equity in other comprehensive income 18,418 — — (18,418 ) — Other comprehensive income (loss) 17,697 (3,613 ) 23,143 (18,418 ) 18,809 Comprehensive income (loss) 52,905 11,741 47,407 (56,578 ) 55,475 Comprehensive income attributable to noncontrolling interests — — (2,570 ) — (2,570 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 52,905 $ 11,741 $ 44,837 $ (56,578 ) $ 52,905 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Thirty-nine weeks ended September 30, 2017 Parent Guarantors Non- Eliminations Total Net earnings $ 119,851 $ 37,784 $ 67,029 $ (100,715 ) $ 123,949 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gain (loss) — 64,411 (3,940 ) — 60,471 Gain (loss) on hedging activities (1,760 ) — — — (1,760 ) Equity in other comprehensive income 60,017 — — (60,017 ) — Other comprehensive income (loss) 58,257 64,411 (3,940 ) (60,017 ) 58,711 Comprehensive income (loss) 178,108 102,195 63,089 (160,732 ) 182,660 Comprehensive income attributable to noncontrolling interests — — (4,552 ) — (4,552 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 178,108 $ 102,195 $ 58,537 $ (160,732 ) $ 178,108 |
Condensed Consolidated Balance Sheets | CONDENSED CONSOLIDATED BALANCE SHEETS September 29, 2018 Parent Guarantors Non- Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 26,292 $ 10,628 $ 258,702 $ — $ 295,622 Receivables, net 154,551 72,521 273,334 — 500,406 Inventories 140,195 42,840 219,765 (2,895 ) 399,905 Contract asset - costs and profits in excess of billings 49,509 39,583 23,528 — 112,620 Prepaid expenses and other assets 11,586 4,433 24,636 — 40,655 Refundable income taxes 13,182 — — — 13,182 Total current assets 395,315 170,005 799,965 (2,895 ) 1,362,390 Property, plant and equipment, at cost 573,119 168,519 412,205 — 1,153,843 Less accumulated depreciation and amortization 386,282 90,810 169,030 — 646,122 Net property, plant and equipment 186,837 77,709 243,175 — 507,721 Goodwill 20,108 110,562 258,924 — 389,594 Other intangible assets 90 28,271 150,332 — 178,693 Investment in subsidiaries and intercompany accounts 1,345,874 1,123,215 933,195 (3,402,284 ) — Other assets 49,952 — 74,728 — 124,680 Total assets $ 1,998,176 $ 1,509,762 $ 2,460,319 $ (3,405,179 ) $ 2,563,078 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current installments of long-term debt $ — $ — $ 829 $ — $ 829 Notes payable to banks — — 3,328 — 3,328 Accounts payable 58,896 18,050 123,522 — 200,468 Accrued employee compensation and benefits 42,381 7,253 31,209 — 80,843 Accrued expenses 40,948 (1,987 ) 67,968 — 106,929 Dividends payable 8,310 — — — 8,310 Total current liabilities 150,535 23,316 226,856 — 400,707 Deferred income taxes 2,938 — 42,138 — 45,076 Long-term debt, excluding current installments 733,815 171,128 2,370 (171,128 ) 736,185 Defined benefit pension liability — — 179,877 — 179,877 Deferred compensation 43,460 — 4,714 — 48,174 Other noncurrent liabilities 10,211 392 8,708 — 19,311 Shareholders’ equity: Common stock of $1 par value 27,900 457,950 648,682 (1,106,632 ) 27,900 Additional paid-in capital — 162,906 1,107,536 (1,270,442 ) — Retained earnings 2,022,538 617,466 510,063 (1,127,529 ) 2,022,538 Accumulated other comprehensive income (loss) (322,554 ) 76,604 (347,156 ) 270,552 (322,554 ) Treasury stock (670,667 ) — — — (670,667 ) Total Valmont Industries, Inc. shareholders’ equity 1,057,217 1,314,926 1,919,125 (3,234,051 ) 1,057,217 Noncontrolling interest in consolidated subsidiaries — — 76,531 — 76,531 Total shareholders’ equity 1,057,217 1,314,926 1,995,656 (3,234,051 ) 1,133,748 Total liabilities and shareholders’ equity $ 1,998,176 $ 1,509,762 $ 2,460,319 $ (3,405,179 ) $ 2,563,078 (11) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED BALANCE SHEETS December 30, 2017 Parent Guarantors Non- Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 83,329 $ 5,304 $ 404,172 $ — $ 492,805 Receivables, net 149,221 82,995 271,461 — 503,677 Inventories 160,444 46,801 217,551 (3,848 ) 420,948 Contract asset - costs and profits in excess of billings — — 16,165 — 16,165 Prepaid expenses and other assets 8,607 970 17,901 — 27,478 Refundable income taxes 11,492 — — — 11,492 Total current assets 413,093 136,070 927,250 (3,848 ) 1,472,565 Property, plant and equipment, at cost 557,371 160,767 447,549 — 1,165,687 Less accumulated depreciation and amortization 368,668 84,508 193,583 — 646,759 Net property, plant and equipment 188,703 76,259 253,966 — 518,928 Goodwill 20,108 110,562 207,050 — 337,720 Other intangible assets 130 30,955 107,514 — 138,599 Investment in subsidiaries and intercompany accounts 1,416,446 1,181,537 927,179 (3,525,162 ) — Other assets 50,773 — 83,665 — 134,438 Total assets $ 2,089,253 $ 1,535,383 $ 2,506,624 $ (3,529,010 ) $ 2,602,250 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current installments of long-term debt $ — $ — $ 966 $ — $ 966 Notes payable to banks — — 161 — 161 Accounts payable 69,915 18,039 139,952 — 227,906 Accrued employee compensation and benefits 44,086 8,749 31,591 — 84,426 Accrued expenses 28,198 9,621 43,210 — 81,029 Dividends payable 8,510 — — — 8,510 Total current liabilities 150,709 36,409 215,880 — 402,998 Deferred income taxes 20,885 — 14,021 — 34,906 Long-term debt, excluding current installments 750,821 185,078 9,836 (191,847 ) 753,888 Defined benefit pension liability — — 189,552 — 189,552 Deferred compensation 42,928 — 5,598 — 48,526 Other noncurrent liabilities 11,074 6 9,505 — 20,585 Shareholders’ equity: Common stock of $1 par value 27,900 457,950 648,682 (1,106,632 ) 27,900 Additional paid-in capital — 159,414 1,107,536 (1,266,950 ) — Retained earnings 1,954,344 622,044 619,622 (1,241,666 ) 1,954,344 Accumulated other comprehensive income (279,022 ) 74,482 (352,567 ) 278,085 (279,022 ) Treasury stock (590,386 ) — — — (590,386 ) Total Valmont Industries, Inc. shareholders’ equity 1,112,836 1,313,890 2,023,273 (3,337,163 ) 1,112,836 Noncontrolling interest in consolidated subsidiaries — — 38,959 — 38,959 Total shareholders’ equity 1,112,836 1,313,890 2,062,232 (3,337,163 ) 1,151,795 Total liabilities and shareholders’ equity $ 2,089,253 $ 1,535,383 $ 2,506,624 $ (3,529,010 ) $ 2,602,250 |
Condensed Consolidated Statements of Cash Flows | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Thirty-nine Weeks Ended September 29, 2018 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 76,689 $ 70,748 $ 26,926 $ (92,212 ) $ 82,151 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 19,498 10,564 31,956 — 62,018 Noncash gain on trading securities — — (62 ) — (62 ) Impairment of property, plant and equipment — — 4,197 — 4,197 Impairment of goodwill & intangible assets — — 15,780 — 15,780 Loss on divestiture of grinding media business 2,518 — 3,566 — 6,084 Stock-based compensation 8,076 — — — 8,076 Defined benefit pension plan expense — — (1,713 ) — (1,713 ) Contribution to defined benefit pension plan — — (1,555 ) — (1,555 ) Loss (gain) on sale of property, plant and equipment 7 (27 ) (333 ) — (353 ) Equity in earnings in nonconsolidated subsidiaries (55,487 ) (37,939 ) — 93,426 — Deferred income taxes 729 1,791 (1,706 ) — 814 Changes in assets and liabilities: Net working capital (28,948 ) (40,255 ) (26,432 ) (1,277 ) (96,912 ) Other noncurrent liabilities (762 ) 387 (874 ) — (1,249 ) Income taxes payable (refundable) (23,256 ) (1,066 ) 15,099 — (9,223 ) Net cash flows from operating activities (936 ) 4,203 64,849 (63 ) 68,053 Cash flows from investing activities: Purchase of property, plant and equipment (16,940 ) (9,546 ) (22,433 ) — (48,919 ) Proceeds from sale of assets 39 232 64,515 — 64,786 Acquisitions, net of cash acquired (57,805 ) — (67,504 ) — (125,309 ) Settlement of net investment hedge (1,621 ) — — — (1,621 ) Other, net 28,299 (3,683 ) (27,050 ) 63 (2,371 ) Net cash flows from investing activities (48,028 ) (12,997 ) (52,472 ) 63 (113,434 ) Cash flows from financing activities: Proceeds from short-term agreements — — 3,217 — 3,217 Proceeds from long-term borrowings 236,936 — — — 236,936 Principal payments on long-term borrowings (252,219 ) — (733 ) — (252,952 ) Settlement of financial derivative (2,467 ) — — — (2,467 ) Debt issuance costs (2,322 ) — — — (2,322 ) Dividends paid (25,415 ) — — — (25,415 ) Dividends to noncontrolling interest — — (5,737 ) — (5,737 ) Intercompany dividends 123,363 11,296 (134,659 ) — — Purchase of noncontrolling interest — — (5,510 ) — (5,510 ) Intercompany capital contribution (3,492 ) 3,492 — — — Purchase of treasury shares (86,919 ) — — — (86,919 ) Proceeds from exercises under stock plans 6,376 — — — 6,376 Purchase of common treasury shares - stock plan exercises (1,914 ) — — — (1,914 ) Net cash flows from financing activities (8,073 ) 14,788 (143,422 ) — (136,707 ) Effect of exchange rate changes on cash and cash equivalents — (670 ) (14,425 ) — (15,095 ) Net change in cash and cash equivalents (57,037 ) 5,324 (145,470 ) — (197,183 ) Cash and cash equivalents—beginning of year 83,329 5,304 404,172 — 492,805 Cash and cash equivalents—end of period $ 26,292 $ 10,628 $ 258,702 $ — $ 295,622 (11) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Thirty-nine Weeks Ended September 30, 2017 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 119,851 $ 37,784 $ 67,029 $ (100,715 ) $ 123,949 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 19,600 11,130 32,770 — 63,500 Noncash loss on trading securities — — 395 — 395 Stock-based compensation 7,300 — — — 7,300 Defined benefit pension plan expense — — 481 — 481 Contribution to defined benefit pension plan — — (26,064 ) — (26,064 ) Loss (gain) on sale of property, plant and equipment (725 ) 59 (66 ) — (732 ) Equity in earnings in nonconsolidated subsidiaries (85,274 ) (15,281 ) — 100,555 — Deferred income taxes 2,065 — (1,986 ) — 79 Changes in assets and liabilities: Net working capital (5,713 ) (23,364 ) (14,815 ) 179 (43,713 ) Other noncurrent liabilities (381 ) — (1,246 ) — (1,627 ) Income taxes payable (refundable) (11,403 ) 802 8,869 — (1,732 ) Net cash flows from operating activities 45,320 11,130 65,367 19 121,836 Cash flows from investing activities: Purchase of property, plant and equipment (14,046 ) (5,952 ) (19,900 ) — (39,898 ) Proceeds from sale of assets 745 (48 ) 878 — 1,575 Acquisitions, net of cash acquired — — (5,362 ) — (5,362 ) Settlement of net investment hedge 5,123 — — — 5,123 Other, net 15,714 (8,985 ) (10,172 ) (19 ) (3,462 ) Net cash flows from investing activities 7,536 (14,985 ) (34,556 ) (19 ) (42,024 ) Cash flows from financing activities: Payments under short-term agreements — — (549 ) — (549 ) Principal payments on long-term borrowings — — (658 ) — (658 ) Dividends paid (25,386 ) — — — (25,386 ) Dividends to noncontrolling interest — — (3,895 ) — (3,895 ) Intercompany dividends 22,662 — (22,662 ) — — Intercompany interest on long-term note — (5,669 ) 5,669 — — Intercompany capital contribution (7,375 ) 7,375 — — — Proceeds from exercises under stock plans 12,446 — — — 12,446 Purchase of common treasury shares - stock plan exercises (3,929 ) — — — (3,929 ) Net cash flows from financing activities (1,582 ) 1,706 (22,095 ) — (21,971 ) Effect of exchange rate changes on cash and cash equivalents — 245 22,888 — 23,133 Net change in cash and cash equivalents 51,274 (1,904 ) 31,604 — 80,974 Cash and cash equivalents—beginning of year 67,225 6,071 339,220 — 412,516 Cash and cash equivalents—end of period $ 118,499 $ 4,167 $ 370,824 $ — $ 493,490 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventories (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 31, 2017 | Dec. 30, 2017 |
Accounting Policies [Abstract] | |||
Inventory valued at the lower of cost, determined on the last-in, first-out (LIFO) method, or market (as a percent) | 35.00% | 37.00% | |
Excess of replacement cost of inventories over the LIFO value | $ 49,239 | $ 43,727 | |
Inventory, Net [Abstract] | |||
Raw materials and purchased parts | 202,517 | 183,029 | |
Work-in-process | 24,046 | 30,671 | |
Finished goods and manufactured goods | 222,581 | 250,975 | |
Subtotal | 449,144 | 464,675 | |
Less: LIFO reserve | 49,239 | 43,727 | |
Net inventory | $ 399,905 | $ 384,705 | $ 420,948 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 |
Income Tax Contingency [Line Items] | |||||
United States | $ 15,596 | $ 28,886 | $ 99,697 | $ 115,082 | |
Foreign | 486 | 21,675 | 18,482 | 59,210 | |
Earnings before income taxes | 16,082 | $ 50,561 | 118,179 | $ 174,292 | |
Unremitted foreign earnings | 393,962 | 393,962 | |||
Decrease in unremitted foreign earnings | 6,038 | ||||
Transition tax obligation | $ 9,436 | 9,436 | |||
Decrease in transition tax obligation | $ 454 | ||||
Federal | |||||
Income Tax Contingency [Line Items] | |||||
Provisional income tax expense | $ 10,713 | ||||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Increase (Decrease) To Provisional Income Tax Expense | 340 | ||||
State | |||||
Income Tax Contingency [Line Items] | |||||
Provisional income tax expense | $ 1,300 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Pension Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Net periodic (benefit) expense: | ||||
Interest cost | $ 4,400 | $ 4,676 | $ 13,602 | $ 13,475 |
Expected return on plan assets | (5,704) | (5,277) | (17,633) | (15,208) |
Amortization of actuarial loss | 750 | 768 | 2,318 | 2,214 |
Net periodic expense (benefit) | $ (554) | $ 167 | $ (1,713) | $ 481 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Stock Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Stock Option Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Shares of common stock available for issuance (in shares) | 1,683,908 | 1,683,908 | ||
Compensation expense | $ 2,702 | $ 2,710 | $ 8,076 | $ 7,300 |
Income tax benefits | $ 676 | $ 1,043 | $ 2,019 | $ 2,811 |
Stock Option Plans | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Vesting period of options | 3 years | |||
Expiration period of grant | 6 years | |||
Stock Option Plans | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Vesting period of options | 7 years | |||
Expiration period of grant | 10 years | |||
Restricted Stock Units (RSUs) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Vesting period of options | 3 years |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | $ 41,475 | $ 41,042 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 41,475 | 41,042 |
Delta E M D Pty Ltd | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of remaining ownership | 1,954 | 1,951 |
Valmont Deferred Compensation Plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets recorded for the investments held | $ 39,521 | $ 39,091 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Comprehensive Income (Details) $ in Thousands | 9 Months Ended |
Sep. 29, 2018USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at the beginning of the period | $ (279,022) |
Balance at the end of the period | (322,554) |
Foreign Currency Translation Adjustments | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at the beginning of the period | (171,399) |
Current-period comprehensive income (loss) | (53,569) |
Divestiture of grinding media business | 9,203 |
Balance at the end of the period | (215,765) |
Gain/(Loss) on Hedging Activities | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at the beginning of the period | 6,357 |
Current-period comprehensive income (loss) | (381) |
Divestiture of grinding media business | 1,215 |
Balance at the end of the period | 7,191 |
Defined Benefit Pension Plan | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at the beginning of the period | (113,980) |
Current-period comprehensive income (loss) | 0 |
Divestiture of grinding media business | 0 |
Balance at the end of the period | (113,980) |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at the beginning of the period | (279,022) |
Current-period comprehensive income (loss) | (53,950) |
Divestiture of grinding media business | 10,418 |
Balance at the end of the period | $ (322,554) |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Effects of Topic 606 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 29, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Inventories | $ 399,905 | $ 420,948 | $ 399,905 | $ 384,705 | ||
Contract asset - costs and profits in excess of billings | 112,620 | 16,165 | 112,620 | 67,672 | ||
Accrued expenses | 106,929 | 81,029 | 106,929 | 83,072 | ||
Deferred income taxes | 45,076 | 34,906 | 45,076 | 38,356 | ||
Retained earnings | 2,022,538 | 1,954,344 | 2,022,538 | 1,964,115 | ||
Net sales | 678,692 | $ 680,779 | 2,059,781 | $ 2,030,989 | ||
Operating income | 38,360 | $ 60,090 | 165,990 | $ 203,196 | ||
Calculated Under Revenue Guidance In Effect Before Topic 606 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Inventories | 463,184 | 420,948 | 463,184 | |||
Contract asset - costs and profits in excess of billings | 26,369 | 16,165 | 26,369 | |||
Accrued expenses | 101,878 | 81,029 | 101,878 | |||
Deferred income taxes | 40,451 | 34,906 | 40,451 | |||
Retained earnings | 2,009,242 | 1,954,344 | 2,009,242 | |||
Net sales | 666,095 | 2,024,921 | ||||
Operating income | 35,697 | 161,289 | ||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Inventories | (63,279) | (63,279) | (36,243) | |||
Contract asset - costs and profits in excess of billings | 86,251 | 86,251 | 51,507 | |||
Accrued expenses | 5,051 | 5,051 | 2,043 | |||
Deferred income taxes | 4,625 | 4,625 | 3,450 | |||
Retained earnings | 13,296 | 9,771 | 13,296 | $ 9,771 | ||
Net sales | 12,597 | 34,860 | ||||
Operating income | $ 2,663 | $ 13,121 | $ 4,701 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenues (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contract with customer | $ 678,692,000 | $ 680,779,000 | $ 2,059,781,000 | $ 2,030,989,000 | ||
Contract asset, current | 112,620,000 | 112,620,000 | $ 67,672,000 | $ 16,165,000 | ||
Contract with customer, liability, current | 5,088 | 5,088 | 7,368 | |||
Revenue recognized from contract liability | 4,456,000 | |||||
Transferred at Point in Time | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contract with customer | 451,295,000 | 1,403,321,000 | ||||
Transferred over Time | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contract with customer | 227,397,000 | 656,460,000 | ||||
Offshore and Other Complex Steel Structures | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Contract asset, current | $ 16,165,000 | |||||
Utility Support Structures Segment | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contract with customer | 217,943,000 | 203,574,000 | 624,333,000 | 613,226,000 | ||
Utility Support Structures Segment | Transferred at Point in Time | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contract with customer | 6,090,000 | 6,090,000 | ||||
Utility Support Structures Segment | Transferred over Time | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contract with customer | 211,853,000 | 618,243,000 | ||||
Engineered Support Structures Segment | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contract with customer | 248,431,000 | 244,675,000 | 710,388,000 | 669,029,000 | ||
Engineered Support Structures Segment | Transferred at Point in Time | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contract with customer | 235,948,000 | 680,863,000 | ||||
Engineered Support Structures Segment | Transferred over Time | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contract with customer | 12,483,000 | 29,525,000 | ||||
Coatings Segment | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contract with customer | 74,547,000 | 67,680,000 | 217,544,000 | 191,612,000 | ||
Coatings Segment | Transferred at Point in Time | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contract with customer | 74,547,000 | 217,544,000 | ||||
Coatings Segment | Transferred over Time | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contract with customer | 0 | 0 | ||||
Irrigation Segment | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contract with customer | 137,771,000 | $ 145,050,000 | 484,436,000 | $ 496,656,000 | ||
Irrigation Segment | Transferred at Point in Time | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contract with customer | 134,710,000 | 475,744,000 | ||||
Irrigation Segment | Transferred over Time | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contract with customer | 3,061,000 | 8,692,000 | ||||
Other Segments | Transferred at Point in Time | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contract with customer | 0 | 23,080,000 | ||||
Other Segments | Transferred over Time | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contract with customer | 0 | 0 | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contract with customer | 12,597,000 | 34,860,000 | ||||
Contract asset, current | $ 86,251,000 | $ 86,251,000 | $ 51,507,000 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Adopted Accounting Changes (Details) £ in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016GBP (£) | Dec. 31, 2016USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Retained earnings | $ 2,022,538 | $ 1,954,344 | $ 2,022,538 | $ 1,964,115 | ||||
Adjustments to operating income (loss) | 38,360 | $ 60,090 | 165,990 | $ 203,196 | ||||
Other Nonoperating Income (Expense) | 2,496 | 350 | 3,199 | 1,203 | ||||
Adjustments to selling, general, and administrative expense | (110,200) | (103,504) | (326,809) | (308,283) | ||||
Adjustments to beginning and ending cash balance | 295,622 | 492,805 | 493,490 | 295,622 | 493,490 | $ 412,516 | ||
Adjustments to cash provided by (used in) operating activities | (68,053) | (121,836) | ||||||
Accounting Standards Update 2014-09 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cumulative impact of ASC 606 adoption | 9,771 | |||||||
Accounting Standards Update 2017-07 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Other Nonoperating Income (Expense) | 167 | 481 | ||||||
Adjustments to selling, general, and administrative expense | 167 | $ 481 | ||||||
Accounting Standards Update 2016-18 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Adjustments to beginning and ending cash balance | £ | £ 10,000 | |||||||
Adjustments to cash provided by (used in) operating activities | $ 12,568 | |||||||
Accounting Standards Update 2016-16 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cumulative impact of ASC 606 adoption | 1,038 | |||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Retained earnings | 13,296 | 9,771 | 13,296 | $ 9,771 | ||||
Net sales | 51,507 | |||||||
Adjustments to operating income (loss) | $ 2,663 | 13,121 | $ 4,701 | |||||
Retained earnings | Accounting Standards Update 2014-09 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cumulative impact of ASC 606 adoption | 9,771 | |||||||
Retained earnings | Accounting Standards Update 2016-16 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cumulative impact of ASC 606 adoption | $ 1,038 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands | Aug. 03, 2018 | Jan. 26, 2018 | Jul. 31, 2017 | Apr. 30, 2016 | Sep. 29, 2018 | Sep. 29, 2018 | Dec. 30, 2017 | Jan. 31, 2019 |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 389,594 | $ 389,594 | $ 337,720 | |||||
Walpar, LLC [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage acquired | 72.00% | |||||||
Consideration transfered | $ 57,805 | |||||||
Goodwill | $ 40,919 | |||||||
Convert Italia S.p.A | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage acquired | 75.00% | |||||||
Consideration transfered | $ 43,504 | |||||||
Contingent consideration liability | 18,760 | |||||||
Goodwill | 41,432 | |||||||
Derit Infrastructure Pvt. Ltd. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Consideration transfered | $ 14,700 | |||||||
Torrent Engineering and Equipment | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage acquired | 60.00% | |||||||
Consideration transfered | $ 4,800 | |||||||
Goodwill | 3,922 | |||||||
Annual revenue of acquiree | 9,000 | |||||||
Customer relationships and other intangible assets | $ 4,020 | |||||||
Aircon | ||||||||
Business Acquisition [Line Items] | ||||||||
Consideration transfered | $ 5,362 | |||||||
Goodwill | 3,327 | |||||||
Annual revenue of acquiree | 10,000 | |||||||
Customer relationships and other intangible assets | $ 2,109 | |||||||
Walpart, Convert, and Torrent [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Revenue of acquiree since acquisition | 11,803 | 13,057 | ||||||
Net earnings of acquiree since acquisition | $ 1,198 | $ 1,055 | ||||||
IGC Galvanizing Industries (M) Sdn Bhd [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage acquired | 10.00% | |||||||
Consideration transfered | $ 5,510 | |||||||
Scenario, Forecast [Member] | Walpar, LLC [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage acquired | 28.00% | |||||||
Customer Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-Lived Intangible Asset, Useful Life | 13 years | 13 years | ||||||
Customer Relationships | Walpar, LLC [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-Lived Intangible Asset, Useful Life | 14 years | |||||||
Patents & Proprietary Technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-Lived Intangible Asset, Useful Life | 14 years | 11 years | ||||||
Patents & Proprietary Technology | Convert Italia S.p.A | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-Lived Intangible Asset, Useful Life | 15 years |
ACQUISITIONS - Schedule of Reco
ACQUISITIONS - Schedule of Recognized Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Aug. 03, 2018 | Dec. 30, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 389,594 | $ 337,720 | |
Convert Italia S.p.A | |||
Business Acquisition [Line Items] | |||
Current assets | $ 18,349 | ||
Other assets | 3,166 | ||
Finite-lived intangibles | 16,554 | ||
Trade name | 8,701 | ||
Goodwill | 41,432 | ||
Total fair value of assets acquired | 88,202 | ||
Current liabilities | 5,376 | ||
Contingent consideration liability | 18,760 | ||
Deferred taxes | 6,061 | ||
Total fair value of liabilities assumed | 30,197 | ||
Non-controlling interests | 14,501 | ||
Net assets acquired | 43,504 | ||
Walpar, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Current assets | 14,729 | ||
Finite-lived intangibles | 32,000 | ||
Trade name | 4,300 | ||
Goodwill | 40,919 | ||
Total fair value of assets acquired | 91,948 | ||
Current liabilities | 2,185 | ||
Deferred taxes | 9,090 | ||
Total fair value of liabilities assumed | 11,275 | ||
Non-controlling interests | 22,868 | ||
Net assets acquired | $ 57,805 |
ACQUISITIONS - Schedule of Busi
ACQUISITIONS - Schedule of Business Acquisitions Pro Forma (Details) - Walpart, Convert, and Torrent [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Business Acquisition [Line Items] | ||||
Net sales | $ 683,608 | $ 694,713 | $ 2,094,092 | $ 2,078,680 |
Net earnings | $ 4,860 | $ 36,482 | $ 78,950 | $ 123,986 |
Earnings per share-diluted (in dollars per share) | $ 220 | $ 1,600 | $ 3,500 | $ 5,460 |
DIVESTITURE - Narrative (Detail
DIVESTITURE - Narrative (Details) - Donhad $ in Thousands, $ in Thousands | Apr. 30, 2018AUD ($) | Apr. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Pre-tax income/(loss) | $ (217) | $ (913) | $ 3,728 | ||
Disposed by sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from divestiture | $ 82,500 | $ 62,518 | |||
Pre-tax gain from divestiture, before recognition of currency translation loss | 4,334 | ||||
Recognition of cumulative currency translation loss and hedges (out of OCI) | $ 10,418 |
DIVESTITURE - Summary of Assets
DIVESTITURE - Summary of Assets and Liabilities of Divestiture (Details) - Donhad - Disposed by sale $ in Thousands | Apr. 30, 2018USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Receivables, net | $ 9,848 |
Inventories | 15,945 |
Net property, plant, and equipment | 13,815 |
Goodwill and intangible assets | 27,153 |
Other assets | 1,388 |
Total assets | 68,149 |
Accounts payable | 7,125 |
Accrued expenses | 2,484 |
Deferred income taxes | 2,187 |
Total liabilities | 11,796 |
Net assets | $ 56,353 |
DIVESTITURE - Summary of Gain (
DIVESTITURE - Summary of Gain (Loss) on Divestiture (Details) - USD ($) $ in Thousands | Apr. 30, 2018 | Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net pre-tax loss from divestiture of the grinding media business | $ 0 | $ 0 | $ (6,084) | $ 0 | |
Donhad | Disposed by sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Pre-tax gain from divestiture, before recognition of currency translation loss | $ 4,334 | ||||
Recognition of cumulative currency translation loss and hedges (out of OCI) | (10,418) | ||||
Net pre-tax loss from divestiture of the grinding media business | $ (6,084) |
RESTRUCTURING ACTIVITIES - Narr
RESTRUCTURING ACTIVITIES - Narrative (Details) - ESS $ in Thousands | Feb. 28, 2018USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Expected restructuring costs | $ 27,000 |
Restructuring asset impairment | |
Restructuring Cost and Reserve [Line Items] | |
Expected restructuring costs | 8,000 |
Total cost of sales | |
Restructuring Cost and Reserve [Line Items] | |
Expected restructuring costs | 14,500 |
Selling, General and Administrative Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Expected restructuring costs | $ 12,500 |
RESTRUCTURING ACTIVITIES - Rest
RESTRUCTURING ACTIVITIES - Restructuring Activities - Restruciting Expenses and Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 29, 2018 | Sep. 29, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 6,243 | $ 17,662 |
ESS | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 5,746 | 14,793 |
Utility | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 497 | 2,743 |
Corporate Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 126 |
Total cost of sales | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 3,935 | 10,765 |
Total cost of sales | ESS | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 3,438 | 8,022 |
Total cost of sales | Utility | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 497 | 2,743 |
Total cost of sales | Corporate Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 0 |
Selling, General and Administrative Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 2,308 | 6,897 |
Selling, General and Administrative Expenses | ESS | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 2,308 | 6,771 |
Selling, General and Administrative Expenses | Utility | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 0 |
Selling, General and Administrative Expenses | Corporate Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 126 |
Severance | Total cost of sales | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1,706 | 4,247 |
Severance | Total cost of sales | ESS | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1,706 | 3,732 |
Severance | Total cost of sales | Utility | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 515 |
Severance | Total cost of sales | Corporate Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 0 |
Severance | Selling, General and Administrative Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1,757 | 5,268 |
Severance | Selling, General and Administrative Expenses | ESS | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1,757 | 5,268 |
Severance | Selling, General and Administrative Expenses | Utility | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 0 |
Severance | Selling, General and Administrative Expenses | Corporate Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 0 |
Other cash restructuring expenses | Total cost of sales | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 823 | 2,706 |
Other cash restructuring expenses | Total cost of sales | ESS | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 326 | 478 |
Other cash restructuring expenses | Total cost of sales | Utility | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 497 | 2,228 |
Other cash restructuring expenses | Total cost of sales | Corporate Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 0 |
Other cash restructuring expenses | Selling, General and Administrative Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 551 | 1,244 |
Other cash restructuring expenses | Selling, General and Administrative Expenses | ESS | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 551 | 1,118 |
Other cash restructuring expenses | Selling, General and Administrative Expenses | Utility | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 0 |
Other cash restructuring expenses | Selling, General and Administrative Expenses | Corporate Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 126 |
Asset impairments/net loss on disposals | Total cost of sales | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1,406 | 3,812 |
Asset impairments/net loss on disposals | Total cost of sales | ESS | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1,406 | 3,812 |
Asset impairments/net loss on disposals | Total cost of sales | Utility | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 0 |
Asset impairments/net loss on disposals | Total cost of sales | Corporate Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 0 |
Asset impairments/net loss on disposals | Selling, General and Administrative Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 385 |
Asset impairments/net loss on disposals | Selling, General and Administrative Expenses | ESS | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 385 |
Asset impairments/net loss on disposals | Selling, General and Administrative Expenses | Utility | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 0 |
Asset impairments/net loss on disposals | Selling, General and Administrative Expenses | Corporate Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0 | $ 0 |
RESTRUCTURING ACTIVITIES - Liab
RESTRUCTURING ACTIVITIES - Liabilities Recorded For The Restructuring Plan (Details) $ in Thousands | 9 Months Ended |
Sep. 29, 2018USD ($) | |
Restructuring Cost and Reserve [Roll Forward] | |
Beginning balance | $ 1,216 |
Recognized Restructuring Expense | 13,465 |
Costs Paid or Otherwise Settled | (13,078) |
Ending balance | 1,603 |
Severance | |
Restructuring Cost and Reserve [Roll Forward] | |
Beginning balance | 0 |
Recognized Restructuring Expense | 9,515 |
Costs Paid or Otherwise Settled | (9,095) |
Ending balance | 420 |
Other cash restructuring expenses | |
Restructuring Cost and Reserve [Roll Forward] | |
Beginning balance | 1,216 |
Recognized Restructuring Expense | 3,950 |
Costs Paid or Otherwise Settled | (3,983) |
Ending balance | $ 1,183 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Amortized Intangible Assets - (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Dec. 30, 2017 | |
Components of amortized intangible assets | |||||
Gross Carrying Amount | $ 250,329 | $ 250,329 | $ 216,035 | ||
Accumulated Amortization | 141,390 | 141,390 | 142,289 | ||
Amortization expense for intangible assets | 3,721 | $ 4,025 | 11,176 | $ 11,792 | |
Estimated amortization expense | |||||
2,018 | 15,264 | 15,264 | |||
2,019 | 16,081 | 16,081 | |||
2,020 | 14,969 | 14,969 | |||
2,021 | 12,885 | 12,885 | |||
2,022 | 10,740 | 10,740 | |||
Customer Relationships | |||||
Components of amortized intangible assets | |||||
Gross Carrying Amount | 218,492 | 218,492 | 200,810 | ||
Accumulated Amortization | 130,082 | $ 130,082 | $ 131,062 | ||
Weighted Average Life | 13 years | 13 years | |||
Patents & Proprietary Technology | |||||
Components of amortized intangible assets | |||||
Gross Carrying Amount | 23,846 | $ 23,846 | $ 6,693 | ||
Accumulated Amortization | 4,440 | $ 4,440 | $ 3,999 | ||
Weighted Average Life | 14 years | 11 years | |||
Other | |||||
Components of amortized intangible assets | |||||
Gross Carrying Amount | 7,991 | $ 7,991 | $ 8,532 | ||
Accumulated Amortization | $ 6,868 | $ 6,868 | $ 7,228 | ||
Weighted Average Life | 5 years | 5 years |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Carrying Values of Trade Names - (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Newmark | ||
Non-amortized intangible assets | ||
Carrying value of trade names | $ 11,111 | $ 11,111 |
Valmont SM | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 8,283 | 9,973 |
Webforge | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 9,105 | 9,432 |
Convert Italia S.p.A | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 8,703 | 0 |
Ingal EPS/Ingal Civil Products | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 7,424 | 7,690 |
Shakespeare | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 4,000 | 4,000 |
Other | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 21,128 | 22,647 |
Trade Names | ||
Non-amortized intangible assets | ||
Carrying value of trade names | $ 69,754 | $ 64,853 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 29, 2018 | Sep. 29, 2018 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill impairment loss | $ 14,355 | $ 14,355 |
Valmont SM | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Impairment indefinite-lived intangible assets | $ 1,425 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Carrying Amount of Goodwill by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 29, 2018 | Sep. 29, 2018 | Dec. 30, 2017 | |
Goodwill | |||
Gross balance at December 30, 2017 | $ 372,612 | ||
Accumulated impairment losses | (34,892) | ||
Balance at December 30, 2017 | $ 389,594 | $ 337,720 | 337,720 |
Carrying amount of goodwill | |||
Balance at the beginning of the period | 337,720 | ||
Acquisitions | 87,854 | ||
Asset impairment | (14,355) | (14,355) | |
Divestiture of grinding media | (15,814) | ||
Foreign currency translation | (5,811) | ||
Balance at the end of the period | 389,594 | 389,594 | |
Engineered Support Structures Segment | |||
Goodwill | |||
Gross balance at December 30, 2017 | 170,076 | ||
Accumulated impairment losses | (18,670) | ||
Balance at December 30, 2017 | 187,528 | 151,406 | 151,406 |
Carrying amount of goodwill | |||
Balance at the beginning of the period | 151,406 | ||
Acquisitions | 40,919 | ||
Asset impairment | 0 | ||
Divestiture of grinding media | 0 | ||
Foreign currency translation | (4,797) | ||
Balance at the end of the period | 187,528 | 187,528 | |
Utility Support Structures Segment | |||
Goodwill | |||
Gross balance at December 30, 2017 | 90,248 | ||
Accumulated impairment losses | 0 | ||
Balance at December 30, 2017 | 116,836 | 90,248 | 90,248 |
Carrying amount of goodwill | |||
Balance at the beginning of the period | 90,248 | ||
Acquisitions | 41,432 | ||
Asset impairment | (14,355) | ||
Divestiture of grinding media | 0 | ||
Foreign currency translation | (489) | ||
Balance at the end of the period | 116,836 | 116,836 | |
Coatings Segment | |||
Goodwill | |||
Gross balance at December 30, 2017 | 76,696 | ||
Accumulated impairment losses | (16,222) | ||
Balance at December 30, 2017 | 60,094 | 60,474 | 60,474 |
Carrying amount of goodwill | |||
Balance at the beginning of the period | 60,474 | ||
Acquisitions | 0 | ||
Asset impairment | 0 | ||
Divestiture of grinding media | 0 | ||
Foreign currency translation | (380) | ||
Balance at the end of the period | 60,094 | 60,094 | |
Irrigation Segment | |||
Goodwill | |||
Gross balance at December 30, 2017 | 19,778 | ||
Accumulated impairment losses | 0 | ||
Balance at December 30, 2017 | 25,136 | 19,778 | 19,778 |
Carrying amount of goodwill | |||
Balance at the beginning of the period | 19,778 | ||
Acquisitions | 5,503 | ||
Asset impairment | 0 | ||
Divestiture of grinding media | 0 | ||
Foreign currency translation | (145) | ||
Balance at the end of the period | 25,136 | 25,136 | |
Other Segments | |||
Goodwill | |||
Gross balance at December 30, 2017 | 15,814 | ||
Accumulated impairment losses | 0 | ||
Balance at December 30, 2017 | 0 | 15,814 | $ 15,814 |
Carrying amount of goodwill | |||
Balance at the beginning of the period | 15,814 | ||
Acquisitions | 0 | ||
Asset impairment | 0 | ||
Divestiture of grinding media | (15,814) | ||
Foreign currency translation | 0 | ||
Balance at the end of the period | $ 0 | $ 0 |
CASH FLOW SUPPLEMENTARY INFOR_3
CASH FLOW SUPPLEMENTARY INFORMATION (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest | $ 23,624 | $ 22,732 |
Income taxes | $ 36,855 | $ 52,823 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Basic EPS | |||||
Net earnings attributable to Valmont Industries, Inc. | $ 4,448,000 | $ 35,208,000 | $ 76,689,000 | $ 119,851,000 | |
Shares outstanding basic (in shares) | 22,215,000 | 22,527,000 | 22,421,000 | 22,505,000 | |
Per share amount basic (in dollars per share) | $ 0.20 | $ 1.56 | $ 3.42 | $ 5.33 | |
Dilutive Effect of Stock Options | |||||
Dilutive Effect of Stock Options | $ 0 | $ 0 | $ 0 | $ 0 | |
Dilutive effect of stock options number of shares (in shares) | 137,000 | 224,000 | 153,000 | 212,000 | |
Dilutive effect of stock options (in dollars per share) | $ 0 | $ (0.01) | $ (0.02) | $ (0.05) | |
Diluted EPS | |||||
Diluted EPS | $ 4,448,000 | $ 35,208,000 | $ 76,689,000 | $ 119,851,000 | |
Shares outstanding dilutive (in shares) | 22,352,000 | 22,751,000 | 22,574,000 | 22,717,000 | |
Per share amount diluted (in dollars per share) | $ 0.20 | $ 1.55 | $ 3.40 | $ 5.28 | |
Impact on net income (loss) available for common stockholders | $ (4,448,000) | $ (35,208,000) | $ (76,689,000) | $ (119,851,000) | |
Impact effect on earnings per share basic (in dollars per share) | $ (0.20) | $ (1.56) | $ (3.42) | $ (5.33) | |
Impact effect on net income (loss) available to common stockholders, diluted (in dollars per share) | $ (4,448,000) | $ (35,208,000) | $ (76,689,000) | $ (119,851,000) | |
Impact effect on earnings per share diluted (in dollars per share) | $ (0.20) | $ (1.55) | $ (3.40) | $ (5.28) | |
Antidilutive Securities | |||||
Outstanding stock options with exercise prices exceeding the market price of common stock, excluded from the computation of diluted earnings per share (in shares) | 190,021 | 0 | |||
2018 Restructuring Plan | |||||
Basic EPS | |||||
Net earnings attributable to Valmont Industries, Inc. | $ (7,858,000) | $ (17,478,000) | |||
Per share amount basic (in dollars per share) | $ (0.35) | $ (0.77) | |||
Diluted EPS | |||||
Diluted EPS | $ (7,858,000) | $ (17,478,000) | |||
Per share amount diluted (in dollars per share) | $ (0.35) | $ (0.77) | |||
Impact on net income (loss) available for common stockholders | $ 7,858,000 | $ 17,478,000 | |||
Impact effect on earnings per share basic (in dollars per share) | $ 0.35 | $ 0.77 | |||
Impact effect on net income (loss) available to common stockholders, diluted (in dollars per share) | $ 7,858,000 | $ 17,478,000 | |||
Impact effect on earnings per share diluted (in dollars per share) | $ 0.35 | $ 0.77 | |||
Donhad | Disposed by sale | |||||
Basic EPS | |||||
Net earnings attributable to Valmont Industries, Inc. | $ 5,455,000 | ||||
Per share amount basic (in dollars per share) | $ 0.24 | ||||
Diluted EPS | |||||
Diluted EPS | $ (5,455,000) | ||||
Per share amount diluted (in dollars per share) | $ (0.24) | ||||
Impact on net income (loss) available for common stockholders | $ (5,455,000) | ||||
Impact effect on earnings per share basic (in dollars per share) | $ (0.24) | ||||
Impact effect on net income (loss) available to common stockholders, diluted (in dollars per share) | $ 5,455,000 | ||||
Impact effect on earnings per share diluted (in dollars per share) | $ 0.24 | ||||
2018 Acquisitions [Member] | |||||
Basic EPS | |||||
Net earnings attributable to Valmont Industries, Inc. | $ (2,349,000) | $ (3,155,000) | |||
Per share amount basic (in dollars per share) | $ (0.11) | $ (0.14) | |||
Diluted EPS | |||||
Diluted EPS | $ (2,349,000) | $ (3,155,000) | |||
Per share amount diluted (in dollars per share) | $ (0.11) | $ (0.14) | |||
Impact on net income (loss) available for common stockholders | $ 2,349,000 | $ 3,155,000 | |||
Impact effect on earnings per share basic (in dollars per share) | $ 0.11 | $ 0.14 | |||
Impact effect on net income (loss) available to common stockholders, diluted (in dollars per share) | $ 2,349,000 | $ 3,155,000 | |||
Impact effect on earnings per share diluted (in dollars per share) | $ 0.11 | $ 0.14 | |||
Senior Unsecured Notes 6.625% Due 2020 | Senior Unsecured Notes | |||||
Basic EPS | |||||
Net earnings attributable to Valmont Industries, Inc. | $ (11,115,000) | ||||
Per share amount basic (in dollars per share) | $ (0.50) | ||||
Diluted EPS | |||||
Diluted EPS | $ (11,115,000) | ||||
Per share amount diluted (in dollars per share) | $ (0.50) | ||||
Impact on net income (loss) available for common stockholders | $ 11,115,000 | ||||
Impact effect on earnings per share basic (in dollars per share) | $ 0.50 | ||||
Impact effect on net income (loss) available to common stockholders, diluted (in dollars per share) | $ 11,115,000 | ||||
Impact effect on earnings per share diluted (in dollars per share) | $ 0.50 | ||||
Goodwill and trade name | |||||
Diluted EPS | |||||
Asset impairment charges effect on net income (loss) available for common stockholders | $ 15,479,000 | ||||
Impairment effect on earnings per share (in dollars per share) | $ 0.69 |
HEDGING ACTIVITIES - Fair Value
HEDGING ACTIVITIES - Fair Value of Derivatives (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 2,879 | $ (826) |
Commodity Contract [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 854 | 0 |
Foreign Exchange Forward [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 4,534 | 0 |
Foreign Exchange Forward [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | (826) |
Cross Currency Interest Rate Contract [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 206 | 0 |
Cross Currency Interest Rate Contract [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ (2,715) | $ 0 |
HEDGING ACTIVITIES - Gain (Loss
HEDGING ACTIVITIES - Gain (Loss) on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 758 | $ (19) | $ 714 | $ (56) |
Commodity Contract [Member] | Total cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 717 | 0 | 717 | 0 |
Foreign Exchange Forward [Member] | Other Nonoperating Income (Expense) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 230 | 0 | 230 | 0 |
Interest Rate Contract [Member] | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (395) | (19) | (439) | (56) |
Cross Currency Interest Rate Contract [Member] | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 206 | $ 0 | $ 206 | $ 0 |
HEDGING ACTIVITIES - Schedule o
HEDGING ACTIVITIES - Schedule of Notional Amounts Outstanding (Details) - Designated as Hedging Instrument [Member] - Net Investment Hedging [Member] € in Thousands, kr in Thousands | Sep. 29, 2018USD ($) | Sep. 29, 2018EUR (€) | Sep. 29, 2018DKK (kr) |
Cross Currency Interest Rate Contract [Member] | |||
Derivative [Line Items] | |||
Notional Amount | $ 95,000,000 | ||
Denmark, Kroner | Cross Currency Interest Rate Contract, One [Member] | |||
Derivative [Line Items] | |||
Notional Amount | $ 60,000,000 | kr 386,118 | |
Swapped Interest Rate | 2.52% | 2.52% | 2.52% |
Euro Member Countries, Euro | Cross Currency Interest Rate Contract, Two [Member] | |||
Derivative [Line Items] | |||
Notional Amount | $ 25,000,000 | € 21,580 | |
Swapped Interest Rate | 2.14% | 2.14% | 2.14% |
Euro Member Countries, Euro | Cross Currency Interest Rate Contract, Three [Member] | |||
Derivative [Line Items] | |||
Notional Amount | $ 10,000,000 | € 8,631 | |
Swapped Interest Rate | 2.29% | 2.29% | 2.29% |
HEDGING ACTIVITIES - Narrative
HEDGING ACTIVITIES - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||||
Sep. 29, 2018USD ($)derivative | Mar. 31, 2018USD ($)T | Sep. 30, 2017USD ($) | Sep. 29, 2018USD ($)derivativeT | Sep. 30, 2017USD ($) | Jun. 30, 2018USD ($)derivative | Jun. 19, 2018USD ($) | |
Derivative [Line Items] | |||||||
Deferred loss on interest rate hedges | $ 0 | $ 0 | $ (2,467,000) | $ 0 | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Reclassification for Discontinuance, before Tax | 411,000 | ||||||
Commodity Contract [Member] | |||||||
Derivative [Line Items] | |||||||
Gain (Loss) on Derivative Used in Net Investment Hedge, after Tax | (717,000) | 0 | (717,000) | 0 | |||
Interest Rate Swap [Member] | |||||||
Derivative [Line Items] | |||||||
Notional Amount | $ 175,000,000 | ||||||
Foreign Exchange Forward [Member] | |||||||
Derivative [Line Items] | |||||||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), Reclassification, before Tax | 1,621,000 | ||||||
Gain (Loss) on Derivative Used in Net Investment Hedge, after Tax | 0 | $ 0 | 1,215,000 | $ 0 | |||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Long [Member] | |||||||
Derivative [Line Items] | |||||||
Notional Amount | 15,563,000 | $ 8,469,000 | $ 15,563,000 | ||||
Derivative, Nonmonetary Notional Amount, Mass | T | 3,500 | 6,500 | |||||
Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Number of Instruments Held | derivative | 2 | ||||||
Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | Cross Currency Interest Rate Contract [Member] | |||||||
Derivative [Line Items] | |||||||
Notional Amount | $ 95,000,000 | $ 95,000,000 | |||||
Derivative, Number of Instruments Held | derivative | 3 | 3 | |||||
Senior Unsecured Notes | Senior Unsecured Notes 5.00% Due 2044 | |||||||
Derivative [Line Items] | |||||||
Aggregate amount | $ 450,000,000 | $ 450,000,000 | $ 200,000,000 | ||||
Stated rate | 5.00% | 5.00% | |||||
Senior Unsecured Notes | Senior Unsecured Notes 5.25% Due 2054 | |||||||
Derivative [Line Items] | |||||||
Aggregate amount | $ 305,000,000 | $ 305,000,000 | $ 55,000,000 | ||||
Stated rate | 5.25% | 5.25% | |||||
Australia, Dollars | Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | |||||||
Derivative [Line Items] | |||||||
Notional Amount | $ 100,000,000 | ||||||
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), before Adjustments and Tax | $ 538,000 | ||||||
Euro Member Countries, Euro | Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | |||||||
Derivative [Line Items] | |||||||
Notional Amount | $ 50,000,000 | ||||||
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), before Adjustments and Tax | $ 3,190,000 |
LONG-TERM DEBT - Summary of Lon
LONG-TERM DEBT - Summary of Long-term Debt (Details) - USD ($) | Jul. 09, 2018 | Jun. 11, 2018 | Sep. 29, 2018 | Sep. 29, 2018 | Jun. 19, 2018 | Dec. 30, 2017 | Oct. 18, 2017 | Oct. 17, 2017 |
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | $ (8,138,000) | $ (8,138,000) | $ (6,112,000) | |||||
Long-term debt | 737,014,000 | 737,014,000 | 754,854,000 | |||||
Less current installments of long-term debt | 829,000 | 829,000 | 966,000 | |||||
Long-term debt, excluding current installments | 736,185,000 | 736,185,000 | 753,888,000 | |||||
Senior Unsecured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Unamortized discount | (21,547,000) | (21,547,000) | (4,312,000) | |||||
Unamortized premium | 0 | 0 | 2,545,000 | |||||
Senior Unsecured Notes | Senior Unsecured Notes 5.00% Due 2044 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | 450,000,000 | 450,000,000 | 250,000,000 | |||||
Unamortized discount | $ (13,992,000) | $ (13,992,000) | ||||||
Debt Disclosure, Footnotes [Abstract] | ||||||||
Stated rate | 5.00% | 5.00% | ||||||
Redemption price, percent | 100.00% | |||||||
Aggregate amount | $ 450,000,000 | $ 450,000,000 | $ 200,000,000 | |||||
Senior Unsecured Notes | Senior Unsecured Notes 5.25% Due 2054 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | 305,000,000 | 305,000,000 | 250,000,000 | |||||
Unamortized discount | $ (7,555,000) | $ (7,555,000) | ||||||
Debt Disclosure, Footnotes [Abstract] | ||||||||
Stated rate | 5.25% | 5.25% | ||||||
Redemption price, percent | 100.00% | |||||||
Aggregate amount | $ 305,000,000 | $ 305,000,000 | $ 55,000,000 | |||||
Senior Unsecured Notes | Senior Unsecured Notes 6.625% Due 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | 0 | 0 | 250,200,000 | |||||
Debt Disclosure, Footnotes [Abstract] | ||||||||
Redemption of debt, amount | $ 250,200,000 | $ 250,200,000 | ||||||
Repayments of debt | 266,000,000 | |||||||
Repayments of debt, unpaid and accrued interest | $ 3,600,000 | |||||||
Redemption related expenses | 14,820,000 | |||||||
Revolving Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | 0 | 0 | 0 | |||||
Debt Disclosure, Footnotes [Abstract] | ||||||||
Maximum borrowing capacity | 600,000,000 | 600,000,000 | ||||||
Maximum borrowing capacity, additional | 200,000,000 | $ 200,000,000 | ||||||
Revolving Credit Agreement | LIBOR | Minimum | ||||||||
Debt Disclosure, Footnotes [Abstract] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
Revolving Credit Agreement | LIBOR | Maximum | ||||||||
Debt Disclosure, Footnotes [Abstract] | ||||||||
Basis spread on variable rate | 1.625% | |||||||
IDR Bonds | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 8,500,000 | $ 8,500,000 | $ 8,500,000 | |||||
Debt Disclosure, Footnotes [Abstract] | ||||||||
Effective rate | 2.96% | 2.96% | 2.00% | |||||
Other Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 3,199,000 | $ 3,199,000 | $ 4,033,000 | |||||
Foreign Line of Credit | Revolving Credit Agreement | ||||||||
Debt Disclosure, Footnotes [Abstract] | ||||||||
Maximum borrowing capacity | $ 400,000,000 | $ 200,000,000 | ||||||
Letter of Credit | Revolving Credit Agreement | ||||||||
Debt Disclosure, Footnotes [Abstract] | ||||||||
Remaining capacity | 585,350,000 | 585,350,000 | ||||||
Outstanding balance | 14,650,000 | 14,650,000 | ||||||
Line of Credit | Revolving Credit Agreement | ||||||||
Debt Disclosure, Footnotes [Abstract] | ||||||||
Remaining capacity | 120,312,000 | 120,312,000 | ||||||
Outstanding balance | $ 123,613,000 | $ 123,613,000 | ||||||
Scenario One | Revolving Credit Agreement | Federal Funds Rate | ||||||||
Debt Disclosure, Footnotes [Abstract] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
Scenario Two | Revolving Credit Agreement | 1-Month LIBOR Rate | ||||||||
Debt Disclosure, Footnotes [Abstract] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
Scenario Three | Revolving Credit Agreement | Minimum | ||||||||
Debt Disclosure, Footnotes [Abstract] | ||||||||
Basis spread on variable rate | 0.00% | |||||||
Scenario Three | Revolving Credit Agreement | Maximum | ||||||||
Debt Disclosure, Footnotes [Abstract] | ||||||||
Basis spread on variable rate | 0.625% |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) - USD ($) $ in Thousands | Jul. 09, 2018 | Jun. 19, 2018 | Jun. 11, 2018 | Sep. 29, 2018 |
Debt Instrument [Line Items] | ||||
Debt maturity, remainder of 2018 | $ 242 | |||
Debt maturity, 2019 | 815 | |||
Debt maturity, 2020 | 814 | |||
Debt maturity, 2021 | 813 | |||
Debt maturity, 2022 | 514 | |||
Debt maturity, 2023 | $ 0 | |||
Senior Unsecured Notes | Senior Unsecured Notes 5.00% Due 2044 | ||||
Debt Instrument [Line Items] | ||||
Issuance of senior unsecured notes | $ 200,000 | |||
Stated rate | 5.00% | |||
Senior Unsecured Notes | Senior Unsecured Notes 5.25% Due 2054 | ||||
Debt Instrument [Line Items] | ||||
Issuance of senior unsecured notes | $ 55,000 | |||
Stated rate | 5.25% | |||
Senior Unsecured Notes | Senior Unsecured Notes 6.625% Due 2020 | ||||
Debt Instrument [Line Items] | ||||
Redemption of debt, amount | $ 250,200 | $ 250,200 |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 30, 2017segment | |
Business Segments | |||||
Number of Reportable Segments | segment | 4 | ||||
Percentage of Sales to Total Consolidated Sales of Other Business Activities, Aggregated as Other, Maximum | 10.00% | ||||
Net sales | $ 678,692 | $ 680,779 | $ 2,059,781 | $ 2,030,989 | |
Operating income | 38,360 | 60,090 | 165,990 | 203,196 | |
Inventory Valuation [Member] | |||||
Business Segments | |||||
Operating income | (2,780) | (1,626) | (5,512) | (2,839) | |
Engineered Support Structures Segment | |||||
Business Segments | |||||
Net sales | 248,431 | 244,675 | 710,388 | 669,029 | |
Operating income | 16,499 | 16,986 | 36,411 | 46,738 | |
Utility Support Structures Segment | |||||
Business Segments | |||||
Net sales | 217,943 | 203,574 | 624,333 | 613,226 | |
Operating income | 2,090 | 22,845 | 46,298 | 69,446 | |
Coatings Segment | |||||
Business Segments | |||||
Net sales | 74,547 | 67,680 | 217,544 | 191,612 | |
Operating income | 14,373 | 14,577 | 41,108 | 36,091 | |
Irrigation Segment | |||||
Business Segments | |||||
Net sales | 137,771 | 145,050 | 484,436 | 496,656 | |
Operating income | 21,302 | 18,235 | 82,917 | 83,196 | |
Other Segments | |||||
Business Segments | |||||
Operating income | 0 | (217) | (913) | 3,728 | |
Corporate | |||||
Business Segments | |||||
Operating income | (13,124) | (10,710) | (34,319) | (33,164) | |
Operating Segment | |||||
Business Segments | |||||
Sales | 700,401 | 700,894 | 2,134,135 | 2,102,941 | |
Operating Segment | Engineered Support Structures Segment | |||||
Business Segments | |||||
Sales | 251,524 | 246,264 | 727,189 | 688,016 | |
Operating Segment | Engineered Support Structures Segment | Lighting, Traffic, and Highway Safety Products | |||||
Business Segments | |||||
Sales | 183,184 | 165,031 | 522,558 | 467,307 | |
Operating Segment | Engineered Support Structures Segment | Communication Products | |||||
Business Segments | |||||
Sales | 35,985 | 46,324 | 109,690 | 121,613 | |
Operating Segment | Engineered Support Structures Segment | Access Systems | |||||
Business Segments | |||||
Sales | 32,355 | 34,909 | 94,941 | 99,096 | |
Operating Segment | Utility Support Structures Segment | |||||
Business Segments | |||||
Sales | 218,269 | 204,809 | 625,850 | 615,678 | |
Operating Segment | Utility Support Structures Segment | Steel | |||||
Business Segments | |||||
Sales | 161,847 | 160,952 | 471,947 | 472,385 | |
Operating Segment | Utility Support Structures Segment | Concrete | |||||
Business Segments | |||||
Sales | 27,715 | 18,811 | 81,562 | 67,921 | |
Operating Segment | Utility Support Structures Segment | Engineered Solar Tracker Solutions | |||||
Business Segments | |||||
Sales | 6,090 | 0 | 6,090 | 0 | |
Operating Segment | Utility Support Structures Segment | Offshore and Other Complex Steel Structures | |||||
Business Segments | |||||
Sales | 22,617 | 25,046 | 66,251 | 75,372 | |
Operating Segment | Coatings Segment | |||||
Business Segments | |||||
Sales | 90,433 | 82,593 | 266,952 | 235,842 | |
Operating Segment | Irrigation Segment | |||||
Business Segments | |||||
Sales | 140,175 | 147,428 | 491,064 | 502,939 | |
Corporate | |||||
Business Segments | |||||
Sales | 0 | 19,800 | 23,080 | 60,466 | |
Net sales | 0 | 19,800 | 23,080 | 60,466 | |
Intersegment | |||||
Business Segments | |||||
Sales | 21,709 | 20,115 | 74,354 | 71,952 | |
Intersegment | Engineered Support Structures Segment | |||||
Business Segments | |||||
Sales | 3,093 | 1,589 | 16,801 | 18,987 | |
Intersegment | Utility Support Structures Segment | |||||
Business Segments | |||||
Sales | 326 | 1,235 | 1,517 | 2,452 | |
Intersegment | Coatings Segment | |||||
Business Segments | |||||
Sales | 15,886 | 14,913 | 49,408 | 44,230 | |
Intersegment | Irrigation Segment | |||||
Business Segments | |||||
Sales | 2,404 | 2,378 | 6,628 | 6,283 | |
Intersegment | Other Segments | |||||
Business Segments | |||||
Sales | $ 0 | $ 0 | $ 0 | $ 0 |
GUARANTOR_NON-GUARANTOR FINAN_3
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION - Condensed Consolidated Statements of Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | ||||
Parent company's percentage ownership of Guarantors | 100.00% | 100.00% | ||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||||
Net sales | $ 678,692 | $ 680,779 | $ 2,059,781 | $ 2,030,989 |
Cost of sales | 514,352 | 517,185 | 1,551,202 | 1,519,510 |
Gross profit | 164,340 | 163,594 | 508,579 | 511,479 |
Selling, general and administrative expenses | 125,980 | 103,504 | 342,589 | 308,283 |
Operating income | 38,360 | 60,090 | 165,990 | 203,196 |
Other income (expense): | ||||
Interest expense | (10,954) | (11,190) | (33,819) | (33,312) |
Interest income | 1,000 | 1,311 | 3,713 | 3,205 |
Loss from divestiture of grinding media business | 0 | 0 | (6,084) | 0 |
Other | (12,324) | 350 | (17,705) | 1,203 |
Total other income (expenses) | (22,278) | (9,529) | (47,811) | (28,904) |
Earnings before income taxes | 16,082 | 50,561 | 118,179 | 174,292 |
Income tax expense (benefit): | ||||
Current | 10,777 | 21,163 | 35,214 | 50,264 |
Deferred income taxes | (1,686) | (7,268) | 814 | 79 |
Total income tax expense (benefit) | 9,091 | 13,895 | 36,028 | 50,343 |
Earnings before equity in earnings of nonconsolidated subsidiaries | 6,991 | 36,666 | 82,151 | 123,949 |
Equity in earnings of nonconsolidated subsidiaries | 0 | 0 | 0 | 0 |
Net earnings | 6,991 | 36,666 | 82,151 | 123,949 |
Less: Earnings attributable to noncontrolling interests | (2,543) | (1,458) | (5,462) | (4,098) |
Net earnings attributable to Valmont Industries, Inc. | 4,448 | 35,208 | 76,689 | 119,851 |
Eliminations | ||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||||
Net sales | (65,566) | (60,820) | (200,754) | (182,956) |
Cost of sales | (65,598) | (60,570) | (202,030) | (182,777) |
Gross profit | 32 | (250) | 1,276 | (179) |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Operating income | 32 | (250) | 1,276 | (179) |
Other income (expense): | ||||
Interest expense | 3,600 | 3,989 | 11,229 | 10,040 |
Interest income | (3,600) | (3,989) | (11,229) | (10,040) |
Loss from divestiture of grinding media business | 0 | |||
Other | 0 | 0 | 0 | 0 |
Total other income (expenses) | 0 | 0 | 0 | 0 |
Earnings before income taxes | 32 | (250) | 1,276 | (179) |
Income tax expense (benefit): | ||||
Deferred income taxes | 0 | 0 | ||
Total income tax expense (benefit) | (26) | (8) | 62 | (19) |
Earnings before equity in earnings of nonconsolidated subsidiaries | 58 | (242) | 1,214 | (160) |
Equity in earnings of nonconsolidated subsidiaries | (13,650) | (37,918) | (93,426) | (100,555) |
Net earnings | (13,592) | (38,160) | (92,212) | (100,715) |
Less: Earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings attributable to Valmont Industries, Inc. | (13,592) | (38,160) | (92,212) | (100,715) |
Parent | ||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||||
Net sales | 293,070 | 284,538 | 906,978 | 893,988 |
Cost of sales | 227,467 | 216,039 | 683,740 | 666,060 |
Gross profit | 65,603 | 68,499 | 223,238 | 227,928 |
Selling, general and administrative expenses | 51,159 | 46,451 | 147,949 | 143,590 |
Operating income | 14,444 | 22,048 | 75,289 | 84,338 |
Other income (expense): | ||||
Interest expense | (10,511) | (10,884) | (32,788) | (32,672) |
Interest income | 174 | 268 | 655 | 563 |
Loss from divestiture of grinding media business | (2,518) | |||
Other | (13,765) | 1,379 | (15,773) | 3,900 |
Total other income (expenses) | (24,102) | (9,237) | (47,906) | (28,209) |
Earnings before income taxes | (9,658) | 12,811 | 27,383 | 56,129 |
Income tax expense (benefit): | ||||
Deferred income taxes | 729 | 2,065 | ||
Total income tax expense (benefit) | (4,497) | 5,556 | 6,181 | 21,552 |
Earnings before equity in earnings of nonconsolidated subsidiaries | (5,161) | 7,255 | 21,202 | 34,577 |
Equity in earnings of nonconsolidated subsidiaries | 9,609 | 27,953 | 55,487 | 85,274 |
Net earnings | 4,448 | 35,208 | 76,689 | 119,851 |
Less: Earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings attributable to Valmont Industries, Inc. | 4,448 | 35,208 | 76,689 | 119,851 |
Guarantors | ||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||||
Net sales | 132,059 | 113,243 | 386,793 | 352,827 |
Cost of sales | 100,130 | 88,757 | 293,238 | 271,620 |
Gross profit | 31,929 | 24,486 | 93,555 | 81,207 |
Selling, general and administrative expenses | 12,908 | 12,046 | 37,360 | 35,555 |
Operating income | 19,021 | 12,440 | 56,195 | 45,652 |
Other income (expense): | ||||
Interest expense | (3,600) | (3,989) | (11,229) | (10,040) |
Interest income | 47 | 9 | 62 | 33 |
Loss from divestiture of grinding media business | 0 | |||
Other | 15 | 11 | 41 | 42 |
Total other income (expenses) | (3,538) | (3,969) | (11,126) | (9,965) |
Earnings before income taxes | 15,483 | 8,471 | 45,069 | 35,687 |
Income tax expense (benefit): | ||||
Deferred income taxes | 1,791 | 0 | ||
Total income tax expense (benefit) | 4,732 | 3,082 | 12,260 | 13,184 |
Earnings before equity in earnings of nonconsolidated subsidiaries | 10,751 | 5,389 | 32,809 | 22,503 |
Equity in earnings of nonconsolidated subsidiaries | 4,041 | 9,965 | 37,939 | 15,281 |
Net earnings | 14,792 | 15,354 | 70,748 | 37,784 |
Less: Earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings attributable to Valmont Industries, Inc. | 14,792 | 15,354 | 70,748 | 37,784 |
Non- Guarantors | ||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||||
Net sales | 319,129 | 343,818 | 966,764 | 967,130 |
Cost of sales | 252,353 | 272,959 | 776,254 | 764,607 |
Gross profit | 66,776 | 70,859 | 190,510 | 202,523 |
Selling, general and administrative expenses | 61,913 | 45,007 | 157,280 | 129,138 |
Operating income | 4,863 | 25,852 | 33,230 | 73,385 |
Other income (expense): | ||||
Interest expense | (443) | (306) | (1,031) | (640) |
Interest income | 4,379 | 5,023 | 14,225 | 12,649 |
Loss from divestiture of grinding media business | (3,566) | |||
Other | 1,426 | (1,040) | (1,973) | (2,739) |
Total other income (expenses) | 5,362 | 3,677 | 11,221 | 9,270 |
Earnings before income taxes | 10,225 | 29,529 | 44,451 | 82,655 |
Income tax expense (benefit): | ||||
Deferred income taxes | (1,706) | (1,986) | ||
Total income tax expense (benefit) | 8,882 | 5,265 | 17,525 | 15,626 |
Earnings before equity in earnings of nonconsolidated subsidiaries | 1,343 | 24,264 | 26,926 | 67,029 |
Equity in earnings of nonconsolidated subsidiaries | 0 | 0 | 0 | 0 |
Net earnings | 1,343 | 24,264 | 26,926 | 67,029 |
Less: Earnings attributable to noncontrolling interests | (2,543) | (1,458) | (5,462) | (4,098) |
Net earnings attributable to Valmont Industries, Inc. | $ (1,200) | $ 22,806 | $ 21,464 | $ 62,931 |
GUARANTOR_NON-GUARANTOR FINAN_4
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION - Condensed Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||||
Net earnings | $ 6,991 | $ 36,666 | $ 82,151 | $ 123,949 |
Foreign currency translation adjustments: | ||||
Unrealized translation gain (loss) | (10,632) | 19,530 | (50,781) | 60,471 |
Realized loss on divestiture of grinding media business recorded in earnings | 0 | 0 | 9,203 | 0 |
Gain (loss) on hedging activities | (910) | (721) | 834 | (1,760) |
Equity in other comprehensive income | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | (11,542) | 18,809 | (40,744) | 58,711 |
Comprehensive income (loss) | (4,551) | 55,475 | 41,407 | 182,660 |
Comprehensive loss (income) attributable to noncontrolling interests | (2,389) | (2,570) | (8,250) | (4,552) |
Comprehensive income attributable to Valmont Industries, Inc. | (6,940) | 52,905 | 33,157 | 178,108 |
Consolidation, Eliminations [Member] | ||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||||
Net earnings | (13,592) | (38,160) | (92,212) | (100,715) |
Foreign currency translation adjustments: | ||||
Unrealized translation gain (loss) | 0 | 0 | 0 | 0 |
Realized loss on divestiture of grinding media business recorded in earnings | 0 | 0 | ||
Gain (loss) on hedging activities | 0 | 0 | 0 | 0 |
Equity in other comprehensive income | 10,478 | (18,418) | 44,366 | (60,017) |
Other comprehensive income (loss) | 10,478 | (18,418) | 44,366 | (60,017) |
Comprehensive income (loss) | (3,114) | (56,578) | (47,846) | (160,732) |
Comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Valmont Industries, Inc. | (3,114) | (56,578) | (47,846) | (160,732) |
Parent | ||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||||
Net earnings | 4,448 | 35,208 | 76,689 | 119,851 |
Foreign currency translation adjustments: | ||||
Unrealized translation gain (loss) | 0 | 0 | 0 | 0 |
Realized loss on divestiture of grinding media business recorded in earnings | 0 | 0 | ||
Gain (loss) on hedging activities | (910) | (721) | 834 | (1,760) |
Equity in other comprehensive income | (10,478) | 18,418 | (44,366) | 60,017 |
Other comprehensive income (loss) | (11,388) | 17,697 | (43,532) | 58,257 |
Comprehensive income (loss) | (6,940) | 52,905 | 33,157 | 178,108 |
Comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Valmont Industries, Inc. | (6,940) | 52,905 | 33,157 | 178,108 |
Guarantors | ||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||||
Net earnings | 14,792 | 15,354 | 70,748 | 37,784 |
Foreign currency translation adjustments: | ||||
Unrealized translation gain (loss) | 4,289 | (3,613) | 2,122 | 64,411 |
Realized loss on divestiture of grinding media business recorded in earnings | 0 | 0 | ||
Gain (loss) on hedging activities | 0 | 0 | 0 | 0 |
Equity in other comprehensive income | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 4,289 | (3,613) | 2,122 | 64,411 |
Comprehensive income (loss) | 19,081 | 11,741 | 72,870 | 102,195 |
Comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Valmont Industries, Inc. | 19,081 | 11,741 | 72,870 | 102,195 |
Non- Guarantors | ||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||||
Net earnings | 1,343 | 24,264 | 26,926 | 67,029 |
Foreign currency translation adjustments: | ||||
Unrealized translation gain (loss) | (14,921) | 23,143 | (52,903) | (3,940) |
Realized loss on divestiture of grinding media business recorded in earnings | 0 | 9,203 | ||
Gain (loss) on hedging activities | 0 | 0 | 0 | 0 |
Equity in other comprehensive income | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | (14,921) | 23,143 | (43,700) | (3,940) |
Comprehensive income (loss) | (13,578) | 47,407 | (16,774) | 63,089 |
Comprehensive loss (income) attributable to noncontrolling interests | (2,389) | (2,570) | (8,250) | (4,552) |
Comprehensive income attributable to Valmont Industries, Inc. | $ (15,967) | $ 44,837 | $ (25,024) | $ 58,537 |
GUARANTOR_NON-GUARANTOR FINAN_5
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION - Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 31, 2017 | Dec. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | |||||
Cash and cash equivalents | $ 295,622 | $ 492,805 | $ 493,490 | $ 412,516 | |
Receivables, net | 500,406 | 503,677 | |||
Inventories | 399,905 | $ 384,705 | 420,948 | ||
Contract asset - costs and profits in excess of billings | 112,620 | 67,672 | 16,165 | ||
Prepaid expenses and other assets | 40,655 | 27,478 | |||
Refundable income taxes | 13,182 | 11,492 | |||
Assets held for sale | 11,492 | ||||
Total current assets | 1,362,390 | 1,472,565 | |||
Property, plant and equipment, at cost | 1,153,843 | 1,165,687 | |||
Less accumulated depreciation and amortization | 646,122 | 646,759 | |||
Net property, plant and equipment | 507,721 | 518,928 | |||
Goodwill | 389,594 | 337,720 | |||
Other intangible assets | 178,693 | 138,599 | |||
Investment in subsidiaries and intercompany accounts | 0 | 0 | |||
Other assets | 124,680 | 134,438 | |||
Total assets | 2,563,078 | 2,602,250 | |||
Current liabilities: | |||||
Current installments of long-term debt | 829 | 966 | |||
Notes payable to banks | 3,328 | 161 | |||
Accounts payable | 200,468 | 227,906 | |||
Accrued employee compensation and benefits | 80,843 | 84,426 | |||
Accrued expenses | 106,929 | 83,072 | 81,029 | ||
Dividends payable | 8,310 | 8,510 | |||
Total current liabilities | (400,707) | (402,998) | |||
Deferred income taxes | 45,076 | 38,356 | 34,906 | ||
Long-term debt, excluding current installments | 736,185 | 753,888 | |||
Defined benefit pension liability | 179,877 | 189,552 | |||
Deferred compensation | 48,174 | 48,526 | |||
Other noncurrent liabilities | 19,311 | 20,585 | |||
Shareholders’ equity: | |||||
Common stock of $1 par value | 27,900 | 27,900 | |||
Additional paid-in capital | 0 | 0 | |||
Retained earnings | 2,022,538 | $ 1,964,115 | 1,954,344 | ||
Accumulated other comprehensive loss | (322,554) | (279,022) | |||
Treasury stock | (670,667) | (590,386) | |||
Total Valmont Industries, Inc. shareholders’ equity | 1,057,217 | 1,112,836 | |||
Noncontrolling interest in consolidated subsidiaries | 76,531 | 38,959 | |||
Total shareholders’ equity | 1,133,748 | 1,151,795 | 1,152,595 | 982,586 | |
Total liabilities and shareholders’ equity | 2,563,078 | 2,602,250 | |||
Eliminations | |||||
Current assets: | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Receivables, net | 0 | 0 | |||
Inventories | (2,895) | (3,848) | |||
Contract asset - costs and profits in excess of billings | 0 | 0 | |||
Prepaid expenses and other assets | 0 | 0 | |||
Refundable income taxes | 0 | ||||
Assets held for sale | 0 | ||||
Total current assets | (2,895) | (3,848) | |||
Property, plant and equipment, at cost | 0 | 0 | |||
Less accumulated depreciation and amortization | 0 | 0 | |||
Net property, plant and equipment | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Other intangible assets | 0 | 0 | |||
Investment in subsidiaries and intercompany accounts | (3,402,284) | (3,525,162) | |||
Other assets | 0 | 0 | |||
Total assets | (3,405,179) | (3,529,010) | |||
Current liabilities: | |||||
Current installments of long-term debt | 0 | 0 | |||
Notes payable to banks | 0 | 0 | |||
Accounts payable | 0 | 0 | |||
Accrued employee compensation and benefits | 0 | 0 | |||
Accrued expenses | 0 | 0 | |||
Dividends payable | 0 | 0 | |||
Total current liabilities | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Long-term debt, excluding current installments | (171,128) | (191,847) | |||
Defined benefit pension liability | 0 | 0 | |||
Deferred compensation | 0 | 0 | |||
Other noncurrent liabilities | 0 | 0 | |||
Shareholders’ equity: | |||||
Common stock of $1 par value | (1,106,632) | (1,106,632) | |||
Additional paid-in capital | (1,270,442) | (1,266,950) | |||
Retained earnings | (1,127,529) | (1,241,666) | |||
Accumulated other comprehensive loss | 270,552 | 278,085 | |||
Treasury stock | 0 | 0 | |||
Total Valmont Industries, Inc. shareholders’ equity | (3,234,051) | (3,337,163) | |||
Noncontrolling interest in consolidated subsidiaries | 0 | 0 | |||
Total shareholders’ equity | (3,234,051) | (3,337,163) | |||
Total liabilities and shareholders’ equity | (3,405,179) | (3,529,010) | |||
Parent | |||||
Current assets: | |||||
Cash and cash equivalents | 26,292 | 83,329 | 118,499 | 67,225 | |
Receivables, net | 154,551 | 149,221 | |||
Inventories | 140,195 | 160,444 | |||
Contract asset - costs and profits in excess of billings | 49,509 | 0 | |||
Prepaid expenses and other assets | 11,586 | 8,607 | |||
Refundable income taxes | 13,182 | ||||
Assets held for sale | 11,492 | ||||
Total current assets | 395,315 | 413,093 | |||
Property, plant and equipment, at cost | 573,119 | 557,371 | |||
Less accumulated depreciation and amortization | 386,282 | 368,668 | |||
Net property, plant and equipment | 186,837 | 188,703 | |||
Goodwill | 20,108 | 20,108 | |||
Other intangible assets | 90 | 130 | |||
Investment in subsidiaries and intercompany accounts | 1,345,874 | 1,416,446 | |||
Other assets | 49,952 | 50,773 | |||
Total assets | 1,998,176 | 2,089,253 | |||
Current liabilities: | |||||
Current installments of long-term debt | 0 | 0 | |||
Notes payable to banks | 0 | 0 | |||
Accounts payable | 58,896 | 69,915 | |||
Accrued employee compensation and benefits | 42,381 | 44,086 | |||
Accrued expenses | 40,948 | 28,198 | |||
Dividends payable | 8,310 | 8,510 | |||
Total current liabilities | (150,535) | (150,709) | |||
Deferred income taxes | 2,938 | 20,885 | |||
Long-term debt, excluding current installments | 733,815 | 750,821 | |||
Defined benefit pension liability | 0 | 0 | |||
Deferred compensation | 43,460 | 42,928 | |||
Other noncurrent liabilities | 10,211 | 11,074 | |||
Shareholders’ equity: | |||||
Common stock of $1 par value | 27,900 | 27,900 | |||
Additional paid-in capital | 0 | 0 | |||
Retained earnings | 2,022,538 | 1,954,344 | |||
Accumulated other comprehensive loss | (322,554) | (279,022) | |||
Treasury stock | (670,667) | (590,386) | |||
Total Valmont Industries, Inc. shareholders’ equity | 1,057,217 | 1,112,836 | |||
Noncontrolling interest in consolidated subsidiaries | 0 | 0 | |||
Total shareholders’ equity | 1,057,217 | 1,112,836 | |||
Total liabilities and shareholders’ equity | 1,998,176 | 2,089,253 | |||
Guarantors | |||||
Current assets: | |||||
Cash and cash equivalents | 10,628 | 5,304 | 4,167 | 6,071 | |
Receivables, net | 72,521 | 82,995 | |||
Inventories | 42,840 | 46,801 | |||
Contract asset - costs and profits in excess of billings | 39,583 | 0 | |||
Prepaid expenses and other assets | 4,433 | 970 | |||
Refundable income taxes | 0 | ||||
Assets held for sale | 0 | ||||
Total current assets | 170,005 | 136,070 | |||
Property, plant and equipment, at cost | 168,519 | 160,767 | |||
Less accumulated depreciation and amortization | 90,810 | 84,508 | |||
Net property, plant and equipment | 77,709 | 76,259 | |||
Goodwill | 110,562 | 110,562 | |||
Other intangible assets | 28,271 | 30,955 | |||
Investment in subsidiaries and intercompany accounts | 1,123,215 | 1,181,537 | |||
Other assets | 0 | 0 | |||
Total assets | 1,509,762 | 1,535,383 | |||
Current liabilities: | |||||
Current installments of long-term debt | 0 | 0 | |||
Notes payable to banks | 0 | 0 | |||
Accounts payable | 18,050 | 18,039 | |||
Accrued employee compensation and benefits | 7,253 | 8,749 | |||
Accrued expenses | (1,987) | 9,621 | |||
Dividends payable | 0 | 0 | |||
Total current liabilities | (23,316) | (36,409) | |||
Deferred income taxes | 0 | 0 | |||
Long-term debt, excluding current installments | 171,128 | 185,078 | |||
Defined benefit pension liability | 0 | 0 | |||
Deferred compensation | 0 | 0 | |||
Other noncurrent liabilities | 392 | 6 | |||
Shareholders’ equity: | |||||
Common stock of $1 par value | 457,950 | 457,950 | |||
Additional paid-in capital | 162,906 | 159,414 | |||
Retained earnings | 617,466 | 622,044 | |||
Accumulated other comprehensive loss | 76,604 | 74,482 | |||
Treasury stock | 0 | 0 | |||
Total Valmont Industries, Inc. shareholders’ equity | 1,314,926 | 1,313,890 | |||
Noncontrolling interest in consolidated subsidiaries | 0 | 0 | |||
Total shareholders’ equity | 1,314,926 | 1,313,890 | |||
Total liabilities and shareholders’ equity | 1,509,762 | 1,535,383 | |||
Non- Guarantors | |||||
Current assets: | |||||
Cash and cash equivalents | 258,702 | 404,172 | $ 370,824 | $ 339,220 | |
Receivables, net | 273,334 | 271,461 | |||
Inventories | 219,765 | 217,551 | |||
Contract asset - costs and profits in excess of billings | 23,528 | 16,165 | |||
Prepaid expenses and other assets | 24,636 | 17,901 | |||
Refundable income taxes | 0 | ||||
Assets held for sale | 0 | ||||
Total current assets | 799,965 | 927,250 | |||
Property, plant and equipment, at cost | 412,205 | 447,549 | |||
Less accumulated depreciation and amortization | 169,030 | 193,583 | |||
Net property, plant and equipment | 243,175 | 253,966 | |||
Goodwill | 258,924 | 207,050 | |||
Other intangible assets | 150,332 | 107,514 | |||
Investment in subsidiaries and intercompany accounts | 933,195 | 927,179 | |||
Other assets | 74,728 | 83,665 | |||
Total assets | 2,460,319 | 2,506,624 | |||
Current liabilities: | |||||
Current installments of long-term debt | 829 | 966 | |||
Notes payable to banks | 3,328 | 161 | |||
Accounts payable | 123,522 | 139,952 | |||
Accrued employee compensation and benefits | 31,209 | 31,591 | |||
Accrued expenses | 67,968 | 43,210 | |||
Dividends payable | 0 | 0 | |||
Total current liabilities | (226,856) | (215,880) | |||
Deferred income taxes | 42,138 | 14,021 | |||
Long-term debt, excluding current installments | 2,370 | 9,836 | |||
Defined benefit pension liability | 179,877 | 189,552 | |||
Deferred compensation | 4,714 | 5,598 | |||
Other noncurrent liabilities | 8,708 | 9,505 | |||
Shareholders’ equity: | |||||
Common stock of $1 par value | 648,682 | 648,682 | |||
Additional paid-in capital | 1,107,536 | 1,107,536 | |||
Retained earnings | 510,063 | 619,622 | |||
Accumulated other comprehensive loss | (347,156) | (352,567) | |||
Treasury stock | 0 | 0 | |||
Total Valmont Industries, Inc. shareholders’ equity | 1,919,125 | 2,023,273 | |||
Noncontrolling interest in consolidated subsidiaries | 76,531 | 38,959 | |||
Total shareholders’ equity | 1,995,656 | 2,062,232 | |||
Total liabilities and shareholders’ equity | $ 2,460,319 | $ 2,506,624 |
GUARANTOR_NON-GUARANTOR FINAN_6
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION - Condensed Consolidated Balance Sheets - Additional Information (Details) - $ / shares | Sep. 29, 2018 | Dec. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
GUARANTOR_NON-GUARANTOR FINAN_7
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION - Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||||
Net earnings | $ 6,991 | $ 36,666 | $ 82,151 | $ 123,949 |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 62,018 | 63,500 | ||
Noncash (gain) loss on trading securities | (62) | 395 | ||
Impairment of property, plant and equipment | 4,197 | 0 | ||
Impairment of goodwill and intangible assets | 15,780 | 0 | 15,780 | 0 |
Loss from divestiture of grinding media business | 0 | 0 | 6,084 | 0 |
Stock-based compensation | 8,076 | 7,300 | ||
Defined benefit pension plan expense | (1,713) | 481 | ||
Contribution to defined benefit pension plan | (1,555) | (26,064) | ||
Gain on sale of property, plant and equipment | (353) | (732) | ||
Equity in earnings in nonconsolidated subsidiaries | 0 | 0 | 0 | 0 |
Deferred income taxes | (1,686) | (7,268) | 814 | 79 |
Changes in assets and liabilities: | ||||
Net working capital | (96,912) | (43,713) | ||
Other noncurrent liabilities | (1,249) | (1,627) | ||
Income taxes payable (refundable) | (9,223) | (1,732) | ||
Net cash flows from operating activities | 68,053 | 121,836 | ||
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (48,919) | (39,898) | ||
Proceeds from sale of assets | 64,786 | 1,575 | ||
Acquisitions, net of cash acquired | (125,309) | (5,362) | ||
Settlement of net investment hedge | (1,621) | 5,123 | ||
Other, net | (2,371) | (3,462) | ||
Net cash flows from investing activities | (113,434) | (42,024) | ||
Cash flows from financing activities: | ||||
Proceeds/(payments) under short-term agreements | 3,217 | (549) | ||
Proceeds from long-term borrowings | 236,936 | |||
Principal payments on long-term borrowings | (252,952) | (658) | ||
Settlement of financial derivatives | (2,467) | 0 | ||
Debt issuance costs | (2,322) | 0 | ||
Dividends paid | (25,415) | (25,386) | ||
Dividends to noncontrolling interest | (5,737) | (3,895) | ||
Intercompany dividends | 0 | 0 | ||
Purchase of noncontrolling interest | (5,510) | |||
Intercompany interest on long-term note | 0 | |||
Intercompany capital contribution | 0 | 0 | ||
Purchase of treasury shares | (86,919) | 0 | ||
Proceeds from exercises under stock plans | 6,376 | 12,446 | ||
Purchase of common treasury shares - stock plan exercises | (1,914) | (3,929) | ||
Net cash flows from financing activities | (136,707) | (21,971) | ||
Effect of exchange rate changes on cash and cash equivalents | (15,095) | 23,133 | ||
Net change in cash and cash equivalents | (197,183) | 80,974 | ||
Cash, cash equivalents, and restricted cash—beginning of year | 492,805 | 412,516 | ||
Cash, cash equivalents, and restricted cash—end of period | 295,622 | 493,490 | 295,622 | 493,490 |
Eliminations | ||||
Cash flows from operating activities: | ||||
Net earnings | (13,592) | (38,160) | (92,212) | (100,715) |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 0 | 0 | ||
Noncash (gain) loss on trading securities | 0 | 0 | ||
Impairment of property, plant and equipment | 0 | |||
Impairment of goodwill and intangible assets | 0 | |||
Loss from divestiture of grinding media business | 0 | |||
Stock-based compensation | 0 | 0 | ||
Defined benefit pension plan expense | 0 | 0 | ||
Contribution to defined benefit pension plan | 0 | 0 | ||
Gain on sale of property, plant and equipment | 0 | 0 | ||
Equity in earnings in nonconsolidated subsidiaries | 13,650 | 37,918 | 93,426 | 100,555 |
Deferred income taxes | 0 | 0 | ||
Changes in assets and liabilities: | ||||
Net working capital | (1,277) | 179 | ||
Other noncurrent liabilities | 0 | 0 | ||
Income taxes payable (refundable) | 0 | 0 | ||
Net cash flows from operating activities | (63) | 19 | ||
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | 0 | 0 | ||
Proceeds from sale of assets | 0 | 0 | ||
Acquisitions, net of cash acquired | 0 | 0 | ||
Settlement of net investment hedge | 0 | 0 | ||
Other, net | 63 | (19) | ||
Net cash flows from investing activities | 63 | (19) | ||
Cash flows from financing activities: | ||||
Proceeds/(payments) under short-term agreements | 0 | 0 | ||
Proceeds from long-term borrowings | 0 | |||
Principal payments on long-term borrowings | 0 | 0 | ||
Settlement of financial derivatives | 0 | |||
Debt issuance costs | 0 | |||
Dividends paid | 0 | 0 | ||
Dividends to noncontrolling interest | 0 | 0 | ||
Intercompany dividends | 0 | 0 | ||
Purchase of noncontrolling interest | 0 | |||
Intercompany interest on long-term note | 0 | |||
Intercompany capital contribution | 0 | 0 | ||
Purchase of treasury shares | 0 | |||
Proceeds from exercises under stock plans | 0 | 0 | ||
Purchase of common treasury shares - stock plan exercises | 0 | 0 | ||
Net cash flows from financing activities | 0 | 0 | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net change in cash and cash equivalents | 0 | 0 | ||
Cash, cash equivalents, and restricted cash—beginning of year | 0 | 0 | ||
Cash, cash equivalents, and restricted cash—end of period | 0 | 0 | 0 | 0 |
Parent | ||||
Cash flows from operating activities: | ||||
Net earnings | 4,448 | 35,208 | 76,689 | 119,851 |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 19,498 | 19,600 | ||
Noncash (gain) loss on trading securities | 0 | 0 | ||
Impairment of property, plant and equipment | 0 | |||
Impairment of goodwill and intangible assets | 0 | |||
Loss from divestiture of grinding media business | 2,518 | |||
Stock-based compensation | 8,076 | 7,300 | ||
Defined benefit pension plan expense | 0 | 0 | ||
Contribution to defined benefit pension plan | 0 | 0 | ||
Gain on sale of property, plant and equipment | 7 | (725) | ||
Equity in earnings in nonconsolidated subsidiaries | (9,609) | (27,953) | (55,487) | (85,274) |
Deferred income taxes | 729 | 2,065 | ||
Changes in assets and liabilities: | ||||
Net working capital | (28,948) | (5,713) | ||
Other noncurrent liabilities | (762) | (381) | ||
Income taxes payable (refundable) | (23,256) | (11,403) | ||
Net cash flows from operating activities | (936) | 45,320 | ||
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (16,940) | (14,046) | ||
Proceeds from sale of assets | 39 | 745 | ||
Acquisitions, net of cash acquired | (57,805) | 0 | ||
Settlement of net investment hedge | (1,621) | 5,123 | ||
Other, net | 28,299 | 15,714 | ||
Net cash flows from investing activities | (48,028) | 7,536 | ||
Cash flows from financing activities: | ||||
Proceeds/(payments) under short-term agreements | 0 | 0 | ||
Proceeds from long-term borrowings | 236,936 | |||
Principal payments on long-term borrowings | (252,219) | 0 | ||
Settlement of financial derivatives | (2,467) | |||
Debt issuance costs | (2,322) | |||
Dividends paid | (25,415) | (25,386) | ||
Dividends to noncontrolling interest | 0 | 0 | ||
Intercompany dividends | 123,363 | 22,662 | ||
Purchase of noncontrolling interest | 0 | |||
Intercompany interest on long-term note | 0 | |||
Intercompany capital contribution | (3,492) | (7,375) | ||
Purchase of treasury shares | (86,919) | |||
Proceeds from exercises under stock plans | 6,376 | 12,446 | ||
Purchase of common treasury shares - stock plan exercises | (1,914) | (3,929) | ||
Net cash flows from financing activities | (8,073) | (1,582) | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net change in cash and cash equivalents | (57,037) | 51,274 | ||
Cash, cash equivalents, and restricted cash—beginning of year | 83,329 | 67,225 | ||
Cash, cash equivalents, and restricted cash—end of period | 26,292 | 118,499 | 26,292 | 118,499 |
Guarantors | ||||
Cash flows from operating activities: | ||||
Net earnings | 14,792 | 15,354 | 70,748 | 37,784 |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 10,564 | 11,130 | ||
Noncash (gain) loss on trading securities | 0 | 0 | ||
Impairment of property, plant and equipment | 0 | |||
Impairment of goodwill and intangible assets | 0 | |||
Loss from divestiture of grinding media business | 0 | |||
Stock-based compensation | 0 | 0 | ||
Defined benefit pension plan expense | 0 | 0 | ||
Contribution to defined benefit pension plan | 0 | 0 | ||
Gain on sale of property, plant and equipment | (27) | 59 | ||
Equity in earnings in nonconsolidated subsidiaries | (4,041) | (9,965) | (37,939) | (15,281) |
Deferred income taxes | 1,791 | 0 | ||
Changes in assets and liabilities: | ||||
Net working capital | (40,255) | (23,364) | ||
Other noncurrent liabilities | 387 | 0 | ||
Income taxes payable (refundable) | (1,066) | 802 | ||
Net cash flows from operating activities | 4,203 | 11,130 | ||
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (9,546) | (5,952) | ||
Proceeds from sale of assets | 232 | (48) | ||
Acquisitions, net of cash acquired | 0 | 0 | ||
Settlement of net investment hedge | 0 | 0 | ||
Other, net | (3,683) | (8,985) | ||
Net cash flows from investing activities | (12,997) | (14,985) | ||
Cash flows from financing activities: | ||||
Proceeds/(payments) under short-term agreements | 0 | 0 | ||
Proceeds from long-term borrowings | 0 | |||
Principal payments on long-term borrowings | 0 | 0 | ||
Settlement of financial derivatives | 0 | |||
Debt issuance costs | 0 | |||
Dividends paid | 0 | 0 | ||
Dividends to noncontrolling interest | 0 | 0 | ||
Intercompany dividends | 11,296 | 0 | ||
Purchase of noncontrolling interest | 0 | |||
Intercompany interest on long-term note | (5,669) | |||
Intercompany capital contribution | 3,492 | 7,375 | ||
Purchase of treasury shares | 0 | |||
Proceeds from exercises under stock plans | 0 | 0 | ||
Purchase of common treasury shares - stock plan exercises | 0 | 0 | ||
Net cash flows from financing activities | 14,788 | 1,706 | ||
Effect of exchange rate changes on cash and cash equivalents | (670) | 245 | ||
Net change in cash and cash equivalents | 5,324 | (1,904) | ||
Cash, cash equivalents, and restricted cash—beginning of year | 5,304 | 6,071 | ||
Cash, cash equivalents, and restricted cash—end of period | 10,628 | 4,167 | 10,628 | 4,167 |
Non- Guarantors | ||||
Cash flows from operating activities: | ||||
Net earnings | 1,343 | 24,264 | 26,926 | 67,029 |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 31,956 | 32,770 | ||
Noncash (gain) loss on trading securities | (62) | 395 | ||
Impairment of property, plant and equipment | 4,197 | |||
Impairment of goodwill and intangible assets | 15,780 | |||
Loss from divestiture of grinding media business | 3,566 | |||
Stock-based compensation | 0 | 0 | ||
Defined benefit pension plan expense | (1,713) | 481 | ||
Contribution to defined benefit pension plan | (1,555) | (26,064) | ||
Gain on sale of property, plant and equipment | (333) | (66) | ||
Equity in earnings in nonconsolidated subsidiaries | 0 | 0 | 0 | 0 |
Deferred income taxes | (1,706) | (1,986) | ||
Changes in assets and liabilities: | ||||
Net working capital | (26,432) | (14,815) | ||
Other noncurrent liabilities | (874) | (1,246) | ||
Income taxes payable (refundable) | 15,099 | 8,869 | ||
Net cash flows from operating activities | 64,849 | 65,367 | ||
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (22,433) | (19,900) | ||
Proceeds from sale of assets | 64,515 | 878 | ||
Acquisitions, net of cash acquired | (67,504) | (5,362) | ||
Settlement of net investment hedge | 0 | 0 | ||
Other, net | (27,050) | (10,172) | ||
Net cash flows from investing activities | (52,472) | (34,556) | ||
Cash flows from financing activities: | ||||
Proceeds/(payments) under short-term agreements | 3,217 | (549) | ||
Proceeds from long-term borrowings | 0 | |||
Principal payments on long-term borrowings | (733) | (658) | ||
Settlement of financial derivatives | 0 | |||
Debt issuance costs | 0 | |||
Dividends paid | 0 | 0 | ||
Dividends to noncontrolling interest | (5,737) | (3,895) | ||
Intercompany dividends | (134,659) | (22,662) | ||
Purchase of noncontrolling interest | (5,510) | |||
Intercompany interest on long-term note | 5,669 | |||
Intercompany capital contribution | 0 | 0 | ||
Purchase of treasury shares | 0 | |||
Proceeds from exercises under stock plans | 0 | 0 | ||
Purchase of common treasury shares - stock plan exercises | 0 | 0 | ||
Net cash flows from financing activities | (143,422) | (22,095) | ||
Effect of exchange rate changes on cash and cash equivalents | (14,425) | 22,888 | ||
Net change in cash and cash equivalents | (145,470) | 31,604 | ||
Cash, cash equivalents, and restricted cash—beginning of year | 404,172 | 339,220 | ||
Cash, cash equivalents, and restricted cash—end of period | $ 258,702 | $ 370,824 | $ 258,702 | $ 370,824 |